What Is the NFTY ETF? A Complete Guide to Returns, Fees, Holdings, and Alternative ETFs
The First Trust India Nifty 50 Equal Weight ETF (NFTY) gives equal exposure to India's core large-cap stocks, resulting in a diversified structure with low concentration in top holdings. The key selection criteria are how it diversifies, its management fee, and its dividend profile compared with market-cap-weighted India ETFs such as INDA.
SubscribeWhat Is the First Trust India Nifty 50 Equal Weight ETF?
This ETF tracks the Nifty 50 Equal Weight Index, which is made up of core large-cap stocks listed on the National Stock Exchange of India. Rather than weighting by market capitalization, it allocates capital equally across all of its holdings.
It suits investors who want to diversify across Indian large caps while reducing concentration in the top holdings.
It is a passive (index-tracking) ETF managed by First Trust.
How Does the First Trust India Nifty 50 Equal Weight ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | Nifty 50 Equal Weight |
| Management Style | Passive (index tracking) |
| Rebalancing Frequency | Quarterly |
| Dividend Frequency | Semiannual |
| Issuer | First Trust |
| Expense Ratio | 0.80% |
The fund holds the same group of stocks as the Nifty 50 Index but allocates equally rather than by market capitalization. This lowers the weight of the largest stocks and raises the contribution of mid- and lower-ranked holdings. Because each position is reset to equal weight at every rebalancing, the diversification effect across holdings is maintained.
- Holds the Nifty 50 at equal weight to ease large-cap concentration
- Provides evenly diversified exposure across Indian large caps
First Trust India Nifty 50 Equal Weight ETF Size and Costs (AUM and Expense Ratio)
Assets under management (AUM) stand at $100.3M, and the expense ratio is 0.80% per year.
Compared with INDA, a market-cap-weighted India ETF, it has lower concentration in top holdings, but its management fee is somewhat higher.
First Trust India Nifty 50 Equal Weight ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe ETF moves in step with the Indian stock market, and because of its equal-weight design, the relative performance of mid- and large-cap stocks is reflected in its returns. Short-term fluctuations are influenced by India's macroeconomic environment, foreign capital flows, and exchange rates.
Fund inflows and outflows follow the emerging-market growth theme and demand for a larger allocation to India, and fund flows tend to react sensitively to changes in exchange rates and global risk appetite.
First Trust India Nifty 50 Equal Weight ETF Strengths and Weaknesses
Its strength is reduced large-cap concentration through equal weighting, while the management fee and currency exposure are cited as weaknesses.
💪 Key Strengths
⚠️ Points of Caution
Alternative ETFs and Related Products to the First Trust India Nifty 50 Equal Weight ETF
A comparable product with exposure to the same Indian large caps is INDA, which uses market-cap weighting, and for broader coverage that extends to Indian small caps, options such as SMIN can also be considered. Comparing it with EEM, which widens exposure to emerging markets overall, or with single-country ETFs in the same emerging-market category such as EWZ and MCHI, also helps gauge the differences in India-only concentration and diversification approach.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 EWT | iShares MSCI Taiwan ETF | $105.99 | -2.7% | $11.9B | 0.59% | 0.96% | +62.5% |
 EWZ | iShares MSCI Brazil ETF | $33.14 | -1.4% | $10.0B | 0.59% | 4.09% | +6.7% |
 INDA | iShares MSCI India ETF | $47.41 | +1.3% | $5.7B | 0.61% | - | -13.2% |
 MCHI | iShares MSCI China ETF | $48.96 | -0.2% | $5.5B | 0.59% | 2.24% | -25.2% |
 FLTW | Franklin FTSE Taiwan ETF | $102.05 | -2.5% | $4.9B | 0.19% | 1.61% | +62.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 RDY | Dr. Reddy's Laboratories Ltd ADR | 0.04% | $14.11 | -0.3% | $11.8B | 38.8 | 0.58% |
 WIT | Wipro Ltd ADR | 0.04% | $2.11 | +2.4% | $20.9B | 15.4 | 4.72% |
| HDB | HDFC Bank Ltd ADR | 0.04% | $21.80 | +1.2% | $112.0B | 13.0 | 1.97% |
| IBN | ICICI Bank Ltd ADR | 0.04% | $29.13 | +1.5% | $104.6B | 16.6 | 0.99% |
| INFY | Infosys Ltd ADR | 0.04% | $12.20 | +0.9% | $49.5B | 15.0 | 5.03% |
First Trust India Nifty 50 Equal Weight ETF Investor Checkpoints
Here are the points to review before investing in NFTY. As a single-country India ETF, it is best to thoroughly check its equal-weight diversification approach, costs, currency exposure, and risk factors specific to emerging markets in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the effect of cumulative costs over a long holding period | Somewhat high |
| 📊 Diversification Method | Understand the difference between equal weight and market-cap weight | Equal weight applied |
| 🌏 Country Concentration | Check the weight of single-country exposure to India | Concentrated in India |
| 💱 Currency | Effect of dollar and rupee exchange rates on won-converted returns | No currency hedge |
Single-country concentration in India and emerging-market volatility are the main risk factors, and exchange rate moves additionally affect returns for investors converting to won. In global risk-off phases, volatility in emerging-market assets can increase.
It is a suitable choice for investors who want to diversify across Indian large caps while reducing concentration. If cost and top-holding exposure are the priority, consider the market-cap-weighted INDA, and if stock-level diversification is the priority, consider this equal-weight ETF.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 26, 2026.
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