InvestorQ : Some stocks that were earlier a part of CPSE ETF are not a part of it anymore. Why?
Kunal Verma made post

Some stocks that were earlier a part of CPSE ETF are not a part of it anymore. Why?

Answer
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seema Upadhyaya answered.
2 years ago


Yes, there were a few stocks that were previously a part of CPSE but aren’t a part of it anymore.

This is because the Finance Ministry restructured the CPSE ETF and included four new stocks and removed three stocks from the basket. This led to the CPSE ETF having 11 stocks instead of the 10 earlier.

Stocks that were added- NTPC, SJVN, NLC and NBCC

Stocks that were removed- GAIL, Engineers India Ltd (EIL) and Container Corporation of India

CPSE is a passive investment- this means that the ETF contains the same stocks in the same proportion and weightage as the index.

As the weightage and value of stocks like GAIL, Container Corp and EIL had increased, new CPSEs had to be included in the ETF to replace them to keep the CPSE ETF index value at the same level. Thus, GAIL, Engineers India Ltd (EIL) and Container Corporation of India were removed to make way for NTPC, SJVN, NLC and NBCC.