Away from gold, silver ETFs, Nifty Metal ETFs shine with infra push; here's ICICI vs Mirae face-off

As India’s industrial and infrastructure expansion fuels unprecedented demand for metals, investors are turning to Nifty Metal ETFs for sector exposure. These funds track the Nifty Metal Index, which represents 15 of India’s leading metal and mining companies. Among the most prominent options are the ICICI Prudential Nifty Metal ETF and the Mirae Asset Nifty Metal ETF — two low-cost, high-efficiency funds that mirror the same benchmark but differ subtly in scale and precision.

Nifty Metal ETFs

Nifty Metal ETFs offer investors a simple way to gain exposure to India’s steel, aluminum, and mining giants without directly trading commodity futures. The Nifty Metal Index includes companies such as Tata Steel, Hindalco, JSW Steel, Vedanta, and Adani Enterprises — businesses that stand to benefit from India’s accelerating infrastructure, manufacturing, and renewable energy projects.

These ETFs are passive, equity-based instruments, meaning they invest in stocks rather than physical metals. Their goal is to replicate the index’s returns by holding each stock in the same proportion as the benchmark, making them cost-effective compared to actively managed sector funds.

ICICI Prudential vs Mirae Asset

The ICICI Prudential Nifty Metal ETF and the Mirae Asset Nifty Metal ETF, both launched in 2024, have quickly emerged as top choices for investors seeking focused exposure to the metals sector. Each charges a 0.19% expense ratio, placing them among India’s most affordable thematic ETFs.

However, their profiles diverge in other key metrics. The ICICI Prudential ETF has amassed a sizable ₹180 crore in AUM, nearly triple Mirae’s ₹67 crore, signaling greater liquidity and institutional participation. For investors executing large trades, higher AUM often ensures tighter bid-ask spreads and smoother price discovery.

That said, Mirae Asset’s ETF wins in tracking efficiency, posting a 0.29% tracking error compared with ICICI’s 0.40%. Lower tracking error means Mirae’s returns more precisely mirror the index’s movements, a crucial factor for passive investors seeking benchmark accuracy.

In terms of performance, both have delivered near-identical results over one year — 18.99% for Mirae and 18.89% for ICICI — easily outperforming the benchmark Nifty Metal Index’s 15.67%. Both ETFs hold 15 stocks, with over 95% exposure to materials and the rest in industrials, maintaining near-perfect index replication.

Side-by-side comparison

PARAMETER                          ICICI PRU NIFTY METAL ETF       MIRAE ASSET NIFTY METAL ETF
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Launch Date                        August 2024                     October 2024
Fund Category                      Equity - Thematic (Metals)      Equity - Thematic (Metals)
NAV (₹)                            10.30                           10.31
1-Year Return (%)                  18.89                           18.99
Benchmark Return (%)               15.67                           15.67
Net Assets / AUM (₹ Crore)         180                             67
Expense Ratio (%)                  0.19                            0.19
Tracking Error (%)                 0.40                            0.29
Portfolio Stocks (Count)           15                              15
Average Market Cap (₹ Cr)          1,51,176                        1,51,177
Portfolio P/E Ratio                20.45                           20.45
Portfolio P/B Ratio                2.54                            2.54
3-Year Earnings Growth (%)         0.72                            0.72
Top Holdings                       Tata Steel, Hindalco,           Tata Steel, Hindalco,
                                   JSW Steel, Vedanta,             JSW Steel, Vedanta,
                                   Adani Enterprises               Adani Enterprises
Sector Allocation (%)              Materials – 95.69               Materials – 95.70
                                   Industrials – 4.25              Industrials – 4.25
Equity Allocation (%)              99.94                           99.95
Cash Holdings (%)                  0.06                            0.05
Exit Load                          Nil                             Nil
Fund Manager / AMC                 ICICI Prudential AMC            Mirae Asset Investment Managers
Registrar                          CAMS                            KFin Technologies
Minimum Investment (₹)             1,000                           5,000
Fund Risk Label                    Very High                       Very High
 

Which one to choose?

> ICICI Prudential ETF has higher AUM (₹180 Cr) and stronger liquidity.
> Mirae Asset ETF has lower tracking error (0.29%) and slightly higher returns.
> Both share identical expense ratios (0.19%) and portfolio composition.
> ICICI suits large-volume investors; Mirae suits retail SIP investors.

What investors should note

The metal sector is cyclical, highly sensitive to global commodity prices, export policies, and economic activity. When industrial demand surges, ETFs like these can outperform broad market funds; during downturns, they may lag.

Both ICICI and Mirae provide low-cost, transparent, and liquid routes to tap India’s commodity supercycle. ICICI offers greater scale and liquidity, ideal for institutional or high-volume traders, while Mirae provides tighter tracking and marginally better returns, appealing to cost-conscious and retail investors.

Infra boom

India’s infrastructure boom, clean energy transition, and “Make in India” push are driving long-term optimism in metals. For investors seeking targeted exposure to this trend, both ICICI Prudential and Mirae Asset Nifty Metal ETFs deliver efficient, diversified access to the country’s industrial backbone.

The choice ultimately depends on investor goals — ICICI for scale and liquidity, Mirae for precision and efficiency — but either way, both ETFs provide a smart, disciplined way to ride India’s metallic growth story.