Comparison of Momentum ETFs in India: Nifty 200 Momentum 30 ETFs
Quick Answer
The best momentum ETF in India typically tracks the Nifty 200 Momentum 30 Index, which selects 30 high-momentum stocks based on 6-month and 12-month returns. Among available options, ETFs from HDFC, ICICI Prudential, and Motilal Oswal are the most popular, with HDFC ETF leading in liquidity and trading volume.
If you're searching for the best momentum ETF India, understanding the Nifty 200 Momentum 30 ETF comparison is essential. These ETFs follow a smart-beta approach, capturing stocks with strong price trends. Over the long term, the momentum factor has delivered higher returns than traditional indices, but with higher volatility (Source: NSE Indices).
What Is the Nifty 200 Momentum 30 Index?
The Nifty 200 Momentum 30 Index is a factor-based index that selects 30 stocks from the Nifty 200 universe based on their price momentum.
Index Methodology: How 30 Stocks Are Selected
- Based on 6-month and 12-month returns
- Adjusted for volatility
- Normalized momentum score calculation
- Top 30 ranked stocks included
Semi-Annual Rebalancing Process
- Rebalanced twice a year (January & July)
- Portfolio churn ~50–80%
- Sector allocations shift significantly
Key Insight
Momentum works because winners tend to keep winning in trending markets—but this also makes it vulnerable to sharp reversals.
All Momentum ETFs Tracking Nifty 200 Momentum 30
HDFC Nifty 200 Momentum 30 ETF
Highest liquidity and trading volume among momentum ETFs.
ICICI Prudential Nifty 200 Momentum 30 ETF
Strong AUM (~₹618 crore) and stable expense ratio.
Motilal Oswal Nifty 200 Momentum 30 ETF
Lower AUM (~₹122 crore), relatively lower liquidity.
UTI & Aditya Birla Momentum ETFs
Emerging options with moderate liquidity.
Key Comparison: AUM, Expense Ratio, Tracking Error, Liquidity
| ETF | AUM | Expense Ratio | Liquidity | Key Strength |
|---|---|---|---|---|
| HDFC Momentum ETF | High | ~0.25% | High | Best liquidity |
| ICICI Momentum ETF | ₹618 Cr | ~0.30% | Moderate | Balanced option |
| Motilal Oswal ETF | ₹122 Cr | ~0.25% | Low | Cost efficient |
| UTI ETF | Low | ~0.30% | Low | New entrant |
| Aditya Birla ETF | Low | ~0.30% | Low | Emerging |
Why AUM Matters
Higher AUM generally leads to lower tracking error and better liquidity, making it easier to buy and sell ETFs efficiently.
Historical Performance of Nifty 200 Momentum 30
- Long-term CAGR: ~18–20% (vs Nifty 500 ~14–15%)
- 3-year ETF return: ~66% (HDFC ETF)
- 1-year return (FY2025): Negative due to correction
Reality Check
Momentum underperformed in FY2025 due to sharp sector rotations and market corrections—highlighting its cyclical nature.
Which ETF to Choose and Why?
- Choose high AUM ETFs for better liquidity
- Check expense ratio and tracking error
- Avoid low-volume ETFs for large investments
- HDFC ETF preferred for active traders
- ICICI ETF suitable for long-term investors
How to Buy a Momentum ETF in India
- Open a Demat account
- Select ETF on NSE/BSE
- Place buy order
- Track periodically
Start Investing
Open your Demat Account to invest in ETFs, and track momentum stocks using the ReSach App for real-time insights.
FAQs
- How does the Nifty 200 Momentum 30 select its stocks?
It selects top 30 stocks based on momentum scores derived from price returns. - Which is the best momentum ETF in India?
HDFC ETF is preferred for liquidity, while ICICI offers balanced exposure. - What is tracking error?
It measures how closely the ETF follows its benchmark index. - How liquid are momentum ETFs?
Liquidity varies; HDFC ETF has the highest trading volume. - Why did momentum ETFs underperform recently?
Due to market corrections and sector rotations in FY2025. - ETF or index fund – which is better?
ETFs offer liquidity and flexibility, while index funds are better for SIP investors.
Compare & Invest in Momentum ETFs
Monarch Networth Capital Limited (MNCL) is a SEBI-registered Portfolio Manager (Registration No. INP000006059). Investments in the securities market are subject to market risks. The information provided is for educational purposes only. Read full disclaimer.
