Second CPSE ETF launch likely by early May

Discussion between the centre and ICICI Mutual Fund, on constituent stocks of ETF are in final stage

The government is firming up plans for launching another CPSE ETF (central public sector enterprises exchange-traded fund) and will likely have it ready to hit the bourses by early May. The discussions between the Centre and the asset manager, ICICI Mutual Fund, on the stocks of the ETF are in final stages, sources say.

ETFs are index-tracking funds that can be traded on exchanges just like a stock, so they combine the diversified holdings of a fund with the low cost and tradability of a share. The biggest advantage is that it provides diversification to investors and is cheaper than investing