The subscriptions for the fourth tranche of CPSE ETF which opened on November 28th, ends today for retail investors. After seeing a robust demand, with anchor investors lapping up the issue by bidding for Rs 13,300 crore or 5.5 times the portion reserved for them. Notably, the ongoing FPO saw bids worth over Rs 3,000 crore from investors on Wednesday, with 95% subscription by retirement funds and insurance companies. According to a PTI report, the government is likely to retain Rs 17,000 crore from the ongoing CPSE ETF follow on offer, as against the original offer size of Rs 14,000 crore. The CPSE ETF is part of the Modi government\u2019s mega disinvestment drive through which it has already garnered Rs 11,500 crore in the earlier three tranches of the ETF. Inorder to woo investors, a discount of \u00a03.5-4% on the issue price is also being provided. Also read:\u00a0Share market LIVE updates: Sensex jumps 150 pts, Nifty reclaims 10,900; Yes Bank up 5%; Vodafone Idea down 2% However, the performance of the CPSE ETF so far has been lacklustre since its inception. \u201cOver the last three years till October 31, 2018, CPSE ETF has yielded a return of 5.97% annualised against Nifty total returns index (TRI) of 10.22% annualised. Since inception, CPSE ETF return has been 8.17% annualised against Nifty TRI of 11.47% annualised,\u201d Joydeep Sen, founder, wiseinvestor.in wrote in a recently published article with FE Online. According to Dhirendra Kumar of Value Research, CPSE ETF cannot be viewed as a long-term investment. \u201cOne cannot look at the CPSE ETF as a long-term investment in one\u2019s portfolio. The is a fund made of only PSU government owned companies and that too today it is 82% energy stocks. The top four holdings \u2014 NTPC, Coal India, IOC and ONGC- account for 80% of the fund. Despite being large companies, the performance and the nature of the fund is like a smallcap one,\u201d Dhirendra Kumar, CEO, Value Research told in an interview to ET Now. Fund Composition CPSE ETF comprises of 11 stocks across various sectors including oil, power, mining, petroleum products, finance etc. In terms of weightages, the top five companies are NTPC (19.59%), Coal India (19.17%), Indian Oil Corporation (18.98%), Oil & Natural Gas Corporation (18.92%) and Rural Electrification Corporation (6.19%). Three existing companies, GAIL, Engineers India Ltd, and the Container Corporation of India, have been removed from the index as the government holding in these companies has fallen below 55%. \u201cThe poor performance by itself is a positive. Valuations are that much more attractive now, and makes a case for investment with a long-term horizon. As on October 31, 2018, the price-earning (PE) ratio Nifty, on the basis of FY18 earnings, is 25.4. As against this, the PE ratio of Nifty CPSE is only 9.5. This represents a 63% discount against Nifty PE level,\u201d Joydeep Sen said.