SPIcE is the first Exchange Traded Fund (ETF) on SENSEX, being launched by Prudential ICICI Mutual Fund.

An ETF is a hybrid product having features of both an open-ended mutual fund and an exchange listed security. The price of one SPIcE unit will be equal to approximately 1/100th of SENSEX value. For example, if the current SENSEX is at 3300, one SPIcE unit will trade at around Rs. 33. The scheme will be managed by Prudential ICICI Asset Management Company (AMC) Ltd. and listed on both The Stock Exchange, Mumbai (BSE) and The Delhi Stock Exchange (DSE).

One unique feature of SPIcE is that it can be bought and sold like any other equity share on the BSE trading terminal (BOLT) through a stockbroker. The minimum lot size will be one unit of SPIcE. Effectively, a retail investor can buy one SPIcE unit for Rs. 33 and hold it in his Demat account just like any other security.

SPIcE is the country's first Exchange Traded Fund on SENSEX. Globally, there are 279 ETFs listed and traded across the world with assets under management of US$ 120 billion. In US, the major ETFs include SPDRs (linked to S&P 500 Index), QQQs (linked to Nasdaq-100 Index) and Diamonds (linked to DJIA). More than 60% of trading volume on American Stock Exchange (AMEX) is in ETFs.