The subscriptions for the fourth tranche of CPSE ETFs will kick-off this week on BSE\u2019s Internet-based book building system (iBBS) platform, an online mechanism for investment. "The subscription CPSE ETF FFO-3 will commence from Wednesday, November 28, till Friday November 30, on BiMF (BSE iBBS Platform for Mutual Fund) module on iBBS platform of BSE," the exchange said in a circular. Even as investors mull whether to invest into this Fund this time around we take a closer look at 5 key things to know. What is CPSE ETF? CPSE ETF is a passive investment fund that was created to help the government in its disinvestment program of divesting stake in select Central Public Sector Enterprises (CPSE) through Exchange Traded Funds (ETF). The fund invests in the Nifty CPSE Index stocks \u2013 that includes eleven PSU companies selected on the basis of established track record, government holding, market capitalisation, dividend history, sector representation, etc. \u2013 in the same proportion and weightage as of the index. Also read:\u00a0Share market LIVE updates: Sensex off day\u2019s low, gains over 100 pts; Nifty reclaims 10,550; paint stocks gain The composition CPSE ETF comprises of 11 stocks across sectors. 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%). The 11 stocks are across sectors\u2014oil, power, mining, petroleum products, finance, etc. 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%. What\u2019s on offer? The government is aiming to mop up Rs 8,000 crore, with a green-shoe option to retain either Rs 4,000 crore or Rs 6,000 crore from the fourth tranche of central public sector enterprises exchange-traded funds (CPSE ETFs), PTI reported citing investment banking sources. Also read:\u00a0IndiGo\u2019s revised web-check in charges: Can you be denied a seat if you don\u2019t pre-book? What IndiGo says Performance so far Market sentiments with regard to PSUs have been negative for some time. In 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. Should you invest? \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, founder, wiseinvestor.in wrote in a recent article published with FE Online. However, in an interview to ET Now, Dhirendra Kumar of Value Research said that CPSE ETF is not a long-term option. \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 - 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 he told the channel.