Nifty PSU Bank ETFs: Top 5 funds by AUM and their historical performance compared

Nifty PSU Bank Index tracks the performance of 12 public sector banks listed on the National Stock Exchange (NSE). Nippon India ETF Nifty PSU Bank BeES is the biggest ETF in this category, with assets under management (AUM) of ₹4,078 crore.

These ETFs replicate the index by investing in its constituent stocks in similar proportions, aiming to deliver returns that closely mirror the benchmark. ETFs can be bought and sold on the stock exchange throughout the trading day, offering investors greater liquidity and flexibility.

Here's a look at the Nifty PSU Bank Index's performance over the years, along with the top five Nifty PSU Bank ETFs by AUM.

A lump sum investment of ₹1 lakh in the Nifty PSU Bank Index would have grown to around ₹1.19 lakh in one year, translating into a one-year return of 18.81%.

Over three years, the same investment would have more than doubled to ₹2.02 lakh. The index delivered even stronger wealth creation over five years, with a CAGR of 28.57%, taking the value of the investment to ₹3.51 lakh.

Over the last 10 years, the same ₹1 lakh investment would have grown to ₹3.26 lakh.

Here is the list of the top 5 Nifty PSU Bank ETFs by AUM, along with the returns comparison over the years.

*AUM as of 31 May, 2026, CAGR return as of 3 July, 2026, Regular Plans, Source: Value Research, 5-Yr Returns not available for DSP, ICICI, and Mirae Asset ETFs

Among ETFs tracking the Nifty PSU Bank Index, Nippon India ETF Nifty PSU Bank BeES is the biggest fund by assets under management (AUM), managing ₹4,078 crore of assets. It is followed by Kotak Nifty PSU Bank ETF, while DSP Nifty PSU Bank ETF ranks third.

Over the long term, Nippon India PSU Bank ETF generated a 5-year CAGR of 27.80%, while Kotak Nifty PSU Bank ETF gave 27.77% returns over the same period. These returns are broadly in line with the benchmark Nifty PSU Bank Index TRI, which delivered a 5-year CAGR of 28.57%.

An investment of ₹1 lakh made five years ago would have grown to approximately ₹3.41 lakh in Nippon India PSU Bank ETF and Kotak Nifty PSU Bank ETF.

The one-year performance also remained largely in line with the benchmark, which was 18.81%. DSP Nifty PSU Bank ETF gave a 18.66% return, Mirae Asset Nifty PSU Bank ETF gave 18.56%, and ICICI Prudential Nifty PSU Bank ETF generated 18.31% in the last one year.

A ₹1 lakh investment made a year ago in any of these three ETFs would have grown to around ₹1.18 lakh.

Disclaimer: This is purely for educational/ informational purposes and should not be taken as any sort of investment advice. Always consult a SEBI-registered advisor before making any investment decisions.

Sheetal Goel is a Content Producer at Livemint, where she covers corporate developments, personal finance, business trends, markets, and SEBI-related updates. She focuses on simplifying complex financial concepts and presenting them in a clear, reader-friendly manner, thereby helping audiences better understand investment trends, personal finance, and market developments. Her writing focuses on making finance more accessible to everyday readers while maintaining clarity, accuracy, and relevance. <br><br> She holds a degree in Economics (Hons.) along with an MBA in Finance, which has helped her develop a strong foundation in financial analysis, market understanding, and business reporting. Before joining journalism, she worked with finance and broking firms, where she closely followed market developments, investment strategies, and evolving industry trends. This practical exposure strengthened her understanding of financial markets. She has also written content across multiple formats and platforms, including YouTube, LinkedIn, and Instagram. <br><br> Over time, she has developed expertise in covering market-linked stories, investor-focused topics, and regulatory updates in a simplified yet informative style. She also enjoys reading and listening to Hindi poetry, reflecting her appreciation for literature and creative...