Mumbai, May 3 (PTI) ICICI Prudential AMC on Monday said its healthcare exchange-traded fund (ETF), based on the 20-stock Nifty healthcare index, will be opened on Thursady, a move that comes within a week of rival fund house Axis Mutual Fund launching a similar fund.

The open-ended ETF, which will close for subscription on May 14, will track the Nifty healthcare index, thus providing investors an exposure to the overall healthcare segment, which includes pharma players, hospitals and pathology labs, among others.

This is the second dedicated ETF based on the healthcare index, after the first one from Axis AMC last week.

The ICICI Prudential healthcare ETF aims to provide returns that closely correspond to the returns provided by the Nifty Healthcare Index in the same proportions, subject to tracking errors.

The fund will provide investors a choice to take exposure to multiple facets of healthcare through this product, the fund house said in a statement without disclosing what will be the target of the fund.

The company said the new ETF is timely given the rising health problems, lifestyle choices and outbreak of the pandemic and the sector has a strong potential to grow steadily in the coming decade.

The Nifty healthcare index comprises 20 healthcare companies led by Sun Pharma, Dr Reddy's, Divi's Laboratories, Cipla and Apollo Hospitals, which form the top-five names in the index.

This healthcare index has outperformed the benchmark Nifty 50 in six of the past 10 years. HRS hrs

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