Mirae Asset launches dividend-focused ETF and equal-weight large-cap ETF; NFO open till Dec 10

Mirae Asset Mutual Fund has launched two new exchange-traded funds (ETFs)—the Mirae Asset BSE 500 Dividend Leaders 50 ETF and the Mirae Asset Nifty Top 20 Equal Weight ETF — expanding its passive investment offerings across dividend-focused and large-cap equal-weight strategies.

The new fund offer (NFO) for both ETFs opened for subscription and will remain available until December 10. Post the NFO period, the schemes will reopen for continuous sale and repurchase on December 16, the fund house said in a statement.

The Mirae Asset BSE 500 Dividend Leaders 50 ETF is an open-ended scheme designed to replicate or track the BSE 500 Dividend Leaders 50 Total Return Index. Meanwhile, the Mirae Asset Nifty Top 20 Equal Weight ETF will replicate or track the Nifty Top 20 Equal Weight Total Return Index, offering equal-weight exposure to India’s largest blue-chip companies.

According to Mirae Asset, the dividend-focused ETF aims to give investors access to companies known for long-term dividend consistency, strong balance sheets, and robust cash flows—indicators typically associated with high-quality and resilient businesses. The equal-weight large-cap ETF, on the other hand, provides exposure to 20 market leaders from the Nifty 50, which together account for nearly half of India’s total market capitalisation. These companies dominate key industries such as telecom, banking, automobiles, infrastructure, technology, and consumption.

Siddharth Srivastava, Head of ETF Products & Fund Manager at Mirae Asset Investment Managers (India), said the new offerings cater to both stability seekers and growth-oriented investors.

“Dividend leaders offer a unique blend of stability and long-term wealth creation potential. These companies have shown consistency in payouts, strong governance standards and disciplined financial management,” he said. With the new Dividend Leaders ETF, he added, the aim is to provide a transparent and cost-efficient route to high-quality businesses that combine steady dividend income with long-term growth.

Speaking about the equal-weight ETF, Srivastava noted that India’s top 20 listed companies are the “driving force of India’s economic expansion”. “These market leaders anchor India’s financial, infrastructure, IT, and consumption engines. The equal-weight strategy ensures investors are not exposed to concentration risks that are common in market-cap weighted indices,” he said.

Mirae Asset BSE 500 Dividend Leaders 50 ETF

This ETF will invest in companies drawn from the BSE 500 universe that have demonstrated consistent dividend payments, a minimum of five years of listing history, and at least 80% dividend-paying frequency over the past decade. Dividend-based strategies tend to generate returns through both capital appreciation and regular dividend income, which can provide stability, especially in volatile markets.

Companies with strong dividend track records typically possess healthy cash flows, prudent capital allocation, and financial resilience, making them attractive to conservative investors or those seeking income-generating equity exposure.

Mirae Asset Nifty Top 20 Equal Weight ETF

This fund offers exposure to India’s top 20 large-cap companies—firms that together command 46.5% of India’s market capitalisation and play pivotal roles in national growth, from digital transformation to infrastructure expansion. Large-cap stocks generally show lower volatility and stronger financial fundamentals compared to mid- and small-caps, helping cushion portfolios during market downturns.

The equal-weight structure ensures each company receives the same allocation, making the portfolio inherently diversified across sectors such as Financials, IT Services, Consumer Goods, Automobiles, and Telecom. This prevents over-reliance on a handful of heavyweights and can potentially enhance long-term risk-adjusted returns.

Peer watch

The BSE 500 Dividend Leaders 50 Index measures the performance of companies in the BSE 500 Index that have consistently paid dividends over the past 10 years. In November, Axis Max Life Insurance Limited introduced the Axis Max Life BSE 500 Dividend Leaders 50 Index Fund, a passively managed equity fund that tracks India’s top high-dividend-yield companies. The fund mirrors the BSE 500 Dividend Leaders 50 Index, giving investors diversified exposure to 50 companies with strong dividend histories across sectors such as energy, technology, commodities, and financial services. It is available through Axis Max Life’s ULIP products — Flexi Wealth Advantage Plan, Smart Term with Additional Returns ULIP, and Online Savings Plan.

The fund invests in 50 companies known for consistent dividend payouts and strong cash-flow visibility over the last decade, offering stability and long-term return potential. The fund follows a transparent, rules-based approach, focusing on companies with consistent dividends and reliable cash flows over the past decade. According to CIO Sachin Bajaj, the strategy aims to combine stability, growth, and long-term wealth creation.