HDFC NIFTY200 MOMENTUM 30 ETF vs ICICI Prudential Nifty 200 Momentum 30 ETF

These two funds, HDFC Nifty200 Momentum 30 ETF and ICICI Prudential Nifty 200 Momentum 30 ETF, are practically mirror images of each other – boasting a 99.95% overlap, ranking them in the top 5% of overlapping pairs we’ve analysed (pair_rank 218 of 5000). This isn’t surprising, as both aim to replicate the same Nifty 200 Momentum 30 index. The extremely high overlap suggests limited diversification benefit from holding both.

The primary driver of this near-total overlap is the index construction itself. Both funds heavily concentrate on the same 30 stocks, with significant weight in the Finance sector (over 20% combined). Key stocks like State Bank of India, Shriram Finance, and Eicher Motors contribute substantially to this overlap, holding almost identical weights in both portfolios.

Interestingly, both funds are virtually identical in their holdings – there are no stocks unique to either fund. This is typical of index funds, but highlights the lack of active management or differing investment strategies here. While both AMCs are reputable (cross-AMC), the investment outcome will be almost the same.

With such a high overlap, you’re essentially doubling down on the same bets. Consider if you need exposure through both funds, or if one is sufficient. This isn’t about fund quality, but about building a well-rounded portfolio. Don't pay twice for the same exposure – focus on diversifying across strategies, not duplicating them.