^NIFTY500 vs. NFTY

Last updated Jun 5, 2026

^NIFTY500 (Nifty 500) is an index, while NFTY (First Trust India NIFTY 50 Equal Weight ETF) is Asia Pacific Equities fund tracking the NIFTY 50 Equal Weight Index. Over the past 10 years, ^NIFTY500 returned 12.66%/yr vs 12.00%/yr for NFTY. At a 0.30 correlation, their price movements are largely independent.

Performance

^NIFTY500 vs. NFTY - Performance Comparison

The chart below illustrates the hypothetical performance of a ₹10,000 investment in Nifty 500 (^NIFTY500) and First Trust India NIFTY 50 Equal Weight ETF (NFTY). The values are adjusted to include any dividend payments, if applicable.

Different Trading Currencies

^NIFTY500 is traded in INR, while NFTY is traded in USD. To make them comparable, the NFTY values have been converted to INR using the latest available exchange rates.

Returns By Period

In the year-to-date period, ^NIFTY500 achieves a -5.76% return, which is significantly lower than NFTY's -3.80% return. Over the past 10 years, ^NIFTY500 has outperformed NFTY with an annualized return of 12.66%, while NFTY has yielded a comparatively lower 12.00% annualized return.

^NIFTY500

• 1D: 0.20%
• 1M: -1.36%
• YTD: -5.76%
• 6M: -5.24%
• 1Y: -1.36%
• 3Y*: 12.36%
• 5Y*: 10.93%
• 10Y*: 12.66%

NFTY

• 1D: 0.00%
• 1M: -1.89%
• YTD: -3.80%
• 6M: -2.73%
• 1Y: 2.39%
• 3Y*: 11.16%
• 5Y*: 10.44%
• 10Y*: 12.00%

*Multi-year figures are annualized to reflect compound growth (CAGR)

^NIFTY500 vs. NFTY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
^NIFTY500 Nifty 500	-5.76%	6.69%	15.16%	25.76%	4.09%	28.86%	16.67%	7.66%	-3.38%	35.91%
NFTY First Trust India NIFTY 50 Equal Weight ETF	-2.91%	10.52%	8.37%	24.85%	6.92%	29.35%	12.81%	3.13%	7.41%	14.22%

Correlation

The correlation between ^NIFTY500 and NFTY is 0.51, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.51
Correlation (3Y) Calculated over the trailing 3-year period	0.60
Correlation (5Y) Calculated over the trailing 5-year period	0.57
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Feb 29, 2012	0.30

Over the past year, ^NIFTY500 and NFTY have become more correlated (0.51) than their long-term average of 0.30, meaning their price movements have been converging.

Return for Risk

^NIFTY500 vs. NFTY — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

^NIFTY500

^NIFTY500 Risk / Return Rank: 8
^NIFTY500 Sharpe Ratio Rank: 8
^NIFTY500 Sortino Ratio Rank: 8
^NIFTY500 Omega Ratio Rank: 8
^NIFTY500 Calmar Ratio Rank: 10
^NIFTY500 Martin Ratio Rank: 8

NFTY

NFTY Risk / Return Rank: 4
NFTY Sharpe Ratio Rank: 5
NFTY Sortino Ratio Rank: 4
NFTY Omega Ratio Rank: 4
NFTY Calmar Ratio Rank: 5
NFTY Martin Ratio Rank: 3

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

^NIFTY500 vs. NFTY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Nifty 500 (^NIFTY500) and First Trust India NIFTY 50 Equal Weight ETF (NFTY). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	^NIFTY500	NFTY	Difference
Sharpe ratio: Return per unit of total volatility	-0.10	0.19	-0.29
Sortino ratio: Return per unit of downside risk	-0.04	0.38	-0.42
Omega ratio: Gain probability vs. loss probability	0.99	1.04	-0.05
Calmar ratio: Return relative to maximum drawdown	-0.09	0.21	-0.31
Martin ratio: Return relative to average drawdown	-0.31	0.72	-1.03
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

^NIFTY500 vs. NFTY - Sharpe Ratio Comparison

The current ^NIFTY500 Sharpe Ratio is -0.10, which is lower than the NFTY Sharpe Ratio of 0.19. The chart below compares the historical Sharpe Ratios of ^NIFTY500 and NFTY, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	^NIFTY500	NFTY	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.10	0.19	-0.29
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.77	0.67	+0.10
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.80	0.63	+0.16
Sharpe Ratio (All Time) Calculated using the full available price history	0.56	0.55	+0.01

Drawdowns

^NIFTY500 vs. NFTY - Drawdown Comparison

The maximum ^NIFTY500 drawdown since its inception was -68.02%, which is greater than NFTY's maximum drawdown of -40.19%. Use the drawdown chart below to compare losses from any high point for ^NIFTY500 and NFTY.

Drawdown Indicators

	^NIFTY500	NFTY	Difference
Max Drawdown Largest peak-to-trough decline	-68.02%	-40.19%	-27.83%
Max Drawdown (1Y) Largest decline over 1 year	-14.82%	-11.25%	-3.57%
Max Drawdown (3Y) Largest decline over 3 years	-18.84%	-16.56%	-2.28%
Max Drawdown (5Y) Largest decline over 5 years	-18.84%	-16.56%	-2.28%
Max Drawdown (10Y) Largest decline over 10 years	-38.30%	-40.19%	+1.89%
Current Drawdown Current decline from peak	-8.16%	-5.64%	-2.52%
Average Drawdown Average peak-to-trough decline	-21.59%	-6.82%	-14.77%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.48%	3.32%	+1.16%

Volatility

^NIFTY500 vs. NFTY - Volatility Comparison

The current volatility for Nifty 500 (^NIFTY500) is 4.01%, while First Trust India NIFTY 50 Equal Weight ETF (NFTY) has a volatility of 4.57%. This indicates that ^NIFTY500 experiences smaller price fluctuations and is considered to be less risky than NFTY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	^NIFTY500	NFTY	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.01%	4.57%	-0.56%
Volatility (6M) Calculated over the trailing 6-month period	12.24%	10.88%	+1.36%
Volatility (1Y) Calculated over the trailing 1-year period	13.86%	12.46%	+1.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	14.37%	15.61%	-1.24%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	16.18%	19.05%	-2.87%

Frequently Asked Questions

Can I hold both ^NIFTY500 and NFTY in my portfolio?

^NIFTY500 and NFTY have a correlation of 0.51, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ^NIFTY500 or NFTY?

NFTY has higher volatility (4.57%) compared to ^NIFTY500 (4.01%). In terms of maximum drawdown, ^NIFTY500 dropped -68.02% vs NFTY's -40.19%.

Which has better risk-adjusted returns?

NFTY currently has the higher Sharpe Ratio (0.19 vs -0.10), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.