If we look at the current market, two apps are performing very well, the name of one is CPSE ETF and the name of the other is Bharat 22 ETF. In today’s article, we will discuss what is the difference between CPSE ETF and Bharat 22 ETF.
Both the ETFs are very good and we get to see amazing returns from them too. If we talk about CPSE ETF, it has 11 shares in its portfolio and if we talk about Bharat 22 ETF, it has 22 shares in its portfolio.
First, we will talk about the difference between the stocks included in these two ETFs, and after that, we will also compare the returns of these two ETFs on different time trends.
The difference in stock portfolio of CPSE ETF and Bharat 22 ETF
There is a lot of difference in the sectors of the stocks in the portfolio of these two ETFs, hence we see a difference in the returns of both of them.
CPSE ETF stock portfolio
If we talk about the stocks in the portfolio of CPSE ETF, then only PSU sector stocks come into it.
It does not include the stocks of all the PSUs, it includes only the stocks of the manufacturing PSU sector, the list of which is given below.
| Stock Invested in | Sector | % of Total Holdings |
|---|---|---|
| Power Grid Corporation of India Ltd. | Power – transmission | 19.79% |
| Oil & Natural Gas Corporation Ltd. | Oil exploration & production | 18.58% |
| National Thermal Power Corporation Ltd. | Power generation | 18.26% |
| Coal India Ltd. | Coal | 17.49% |
| Bharat Electronics Ltd. | Aerospace & defense | 12.57% |
| NHPC Ltd. | Power generation | 4.66% |
| Oil India Ltd. | Oil exploration & production | 2.88% |
| SJVN Ltd. | Power generation | 1.76% |
| NBCC (India) Ltd. | Civil construction | 1.67% |
| Cochin Shipyard Ltd. | Ship building & allied services | 1.22% |
| NLC India Ltd. | Power generation | 1.09% |
Bharat 22 ETF stock portfolio
There are 22 stocks in Bharat 22 ETF and these 22 stocks are stocks of very big and popular companies.
Bharat 22 ETF is a mix of entities that come from both the private sector and PSU sectors.
This ETF has more manufacturing and banking-related companies. The list of stocks included in Bharat 22 ETF is given below.
| Stock Invested in | Sector | % of Total Holdings |
|---|---|---|
| Larsen & Toubro Ltd. | Civil construction | 15.44% |
| National Thermal Power Corporation Ltd. | Power generation | 10.90% |
| ITC Limited | Diversified FMCG | 10.83% |
| Power Grid Corporation of India Ltd. | Power – transmission | 8.54% |
| Axis Bank Ltd. | Private sector bank | 7.23% |
| Oil & Natural Gas Corporation Ltd. | Oil exploration & production | 6.34% |
| State Bank Of India | Public sector bank | 5.88% |
| National Aluminium Co. Ltd. | Aluminium | 5.79% |
| Coal India Ltd. | Coal | 5.48% |
| Bharat Electronics Ltd. | Aerospace & defense | 5.47% |
| Indian Oil Corporation Ltd. | Refineries & marketing | 3.61% |
| Bharat Petroleum Corporation Ltd. | Refineries & marketing | 3.09% |
| GAIL (India) Ltd. | Gas transmission/marketing | 2.92% |
| NHPC Ltd. | Power generation | 1.78% |
| Power Finance Corporation Ltd. | Financial institution | 1.58% |
| Rural Electrification Corporation Limited | Financial institution | 1.51% |
| Bank Of Baroda | Public sector bank | 1.13% |
| NBCC (India) Ltd. | Civil construction | 0.73% |
| Engineers India Ltd. | Civil construction | 0.53% |
| SJVN Ltd. | Power generation | 0.49% |
| NLC India Ltd. | Power generation | 0.41% |
| Indian Bank | Public sector bank | 0.30% |
Bharat 22 ETF and CPSE ETF return comparison
The best way to know the difference between 2 ETFs is to compare their returns. We will compare the returns of Bharat 22 ETF and CPSE ETF on different time frames so that we can know how good returns we get in which ETF.
CPSE ETF versus Bharat 22 ETF 3 months returns
If you compare the 3-month returns of CPSE ETF and Bharat 22 ETF, then CPSE ETF has given returns of +2.74% while Bharat 22 ETF has given returns of +2.20%.
Looking at the returns of 3 months, we can say that CPSE ETF has given more returns than Bharat 22 ETF.
CPSE ETF versus Bharat 22 ETF 6 months returns
If you look at the data of the last 6 months of these two ETFs, then this data is going to be shocking. Because the returns these two ETFs have generated in the last 6 months are more than the returns of any good stock.
CPSE ETF has given returns of +34.32% in the last 6 months while Bharat 22 ETF has given returns of +22.87% in the last 6 months.
If we compare the returns of the last 6 months then CPSE ETF wins among these two ETFs.
CPSE ETF versus Bharat 22 ETF YTM months returns
Now we will talk about YTM returns of CPSE ETF and Bharat 22 ETF. YTM return means the return from the beginning of this year till the current date.
If we talk about YTM returns, CPSE ETF has given returns of up to +17.17%, while Bharat 22 ETF has given returns of up to +9.30%.
If you see, CPSE ETF has given almost double the returns as compared to Bharat 22 ETF. So even during this time frame CPSE ETF is ahead of Bharat 22 ETF.
CPSE ETF versus Bharat 22 ETF 1-year returns
If we look at the 1-year returns of CPSE ETF and Bharat 22 ETF, there is a huge difference between these two ETFs.
CPSE ETF has given returns of +66.14% in the last 1 year, while Bharat 22 ETF has given returns of +45.83%.
If we look at the returns of the last 1 year, CPSE ETF has given 2.31% more returns than Bharat 22 ETF.
CPSE ETF versus Bharat 22 ETF 5-year returns
If you are a long-term investor and you like to invest for the long term then we compare the returns between CPSE ETF and Bharat 22 ETF in the last 5 years.
If you had invested in CPSE ETF for the last 5 years, you would have got returns of +49.89%, whereas if you had invested in Bharat 22 ETF for the last 5 years, you would have got returns of +63.15%.
So for a long-term investor, Bharat 22 ETF would have been a good option because Bharat 22 ETF has generated about 13.26% higher returns than CPSE ETF in 5 years.
CPSE ETF versus Bharat 22 ETF Max returns
Let us talk about how many returns these two ETFs have given in the maximum time, that is, how many returns have they given since both the ETFs were started.
Both these ETFs have given negative returns in this time frame. If we talk about CPSE ETF, its return was +41.71% and if we talk about Bharat 22 ETF, its return was +71.67%.
Conclusion
We can guess which one is better between CPSE ETF vs Bharat 22 ETF by looking at the returns given by both these ETFs.
If you had invested in both these ETFs for short-term investment, you would have seen that CPSE ETF is much better than Bharat 22 ETF.
If you had invested in both these ETFs for a long term i.e. for 5 years, the returns of Bharat 22 ETF would have been much higher than that of CPSE ETF.
Both of these are very good assets for investment. Before investing in these two ETFs, decide whether you want to invest for the long term or the short term.
Before making any investment, do your market research and analysis properly so that you can get good profits and avoid losses.
Note– The data we collect is from Google Finance.