ICICI Prudential Nifty 200 Momentum 30 ETF vs Motilal Oswal Nifty 200 Momentum 30 ETF

These two funds, ICICI Prudential Nifty 200 Momentum 30 ETF and Motilal Oswal Nifty 200 Momentum 30 ETF, are practically mirror images of each other – boasting a 99.95% overlap, ranking them in the top 4.5% of all fund pairs we’ve analysed. This isn’t surprising given they both track the same Nifty 200 Momentum 30 index. The high overlap is driven by a shared strategy and index constituents.

The significant overlap isn’t spread evenly; the Finance sector contributes over 20% to the total. Key stocks like State Bank of India, Shriram Finance, and Bajaj Finance are heavily weighted and identical in both portfolios, predictably driving the near-total match. Motilal Oswal does hold TVS Motor which ICICI doesn’t, but this difference is minimal given the overall picture.

However, this extreme similarity is a double-edged sword. While you’re getting exposure to the same momentum strategy, you’re not achieving any diversification benefit by holding both funds. You’re essentially doubling down on the same 30 stocks, increasing your portfolio’s sensitivity to movements in those specific companies.

With a pair rank of 225 out of 5000, this overlap is exceptionally high. If you already own one of these funds, adding the other offers little to no benefit and increases concentration risk. Consider if your overall portfolio is adequately diversified across strategies, not just within similar momentum approaches.