At the end of the day, the CPSE ETF is a portfolio of blue-chip stocks. In the last few weeks since the Union Budget, all the stocks are falling and the PSU stocks are no exception. One of the advantages of the CPSE ETF is that it offers a discount (3% in the above case), so it reduces your loss even when the stock price corrects. That is the positive side of things. 

The reason such PSU stocks can be profitable for you is twofold. Firstly, over the next two years, the government is planning a major thrust on reviving the PSUs and the CPSE ETF could benefit substantially from that. Secondly, most of these stocks have high dividend yields and hence downside risk is limited. You don’t have to get worried about the same because the CPSE ETF is a good investment for the long term. Short term fluctuations will be there in a volatile market.