Navi MF files for Internet of Things ETF Fund of Fund
Premium- The indicative list of overseas ETFs that Navi Internet of Things ETF Fund of Fund will invest in, includes Global X Internet of Things ETF or similar overseas ETF
Navi Mutual Fund has filed a draft scheme information document with the Securities and Exchange of India (Sebi) for the Internet of Things ETF Fund of Fund (FoF). It is an open-ended fund that will be investing in units of overseas exchange-traded funds which provide exposure to companies that stands to benefit from the broader adaption of the Internet of Things (IoT) technology.
The indicative list of overseas ETFs that Navi Internet of Things ETF Fund of Fund will invest in, includes Global X Internet of Things ETF or similar overseas ETF, as per the document.
Global X Internet of Things ETF, the expected underlying scheme, has net assets of $407.95 million as on 5 April. It invests in companies that stand to potentially benefit from the broader adoption of the Internet of Things (IoT), as enabled by technologies such as WiFi, 5G telecommunications infrastructure, and fiber optics. This includes the development and manufacturing of semiconductors and sensors, integrated products and solutions, and applications serving smart grids, smart homes, connected cars, and the industrial internet. The top holdings of this ETF as of April 5, 2022, include Dexcom Inc, STMicroelectronics, Advantech, Garmin and Skyworks Solutions.
The scheme will be managed by Aditya Mulki. He is the dedicated fund manager for the Overseas ETFs at Navi Mutual Fund.
The scheme will be benchmarked to the Indxx Global Internet of Things Thematic Index, which has been designed to track the performance of companies listed in developed markets that are expected to benefit from the increased adoption of the Internet of Things (IoT). Indxx has been developing and maintaining innovative indexing strategies for asset managers, ETF issuers, and banks for over 15 years.
The scheme shall invest in overseas ETFs subject to a maximum of $300 million per mutual fund, within the overall industry limit of $1 billion.