ETF provider HANetf has announced the upcoming launch of a Ucits ETF offering European investors ESG-screened exposure to the rapid digitisation of India.
The INQQ India Internet & Ecommerce ESG-S Ucits ETF, co-launched by San Francisco-based investment manager EMQQ Global, is classified under Article 8 of the EU’s Sustainable Finance Disclosure Regulation.
The fund will track the India Internet & Ecommerce ESG Screened Index offering 100% exposure to Indian companies.
Despite challenging times for emerging market investors, over the past five years, India’s BSE SENSEX has returned 93% compared to the S&P 500’s 58%, thanks to the expanding middle class, highlighted the asset manager.
The country’s digital infrastructure, coupled with enhanced 4G access and increased spending power of consumers, has translated to 7 million new smartphone users a month, it added.
Given many locally-listed Indian companies are “difficult to find”, the ETF will offer investors targeted exposure to India’s digitisation, said the asset manager.
Kevin Carter, founder and chief investment officer of EMQQ Global, said: “The booming consumer momentum, coupled with India’s strong dedication to scaling physical and digital infrastructure in the coming years, is creating a compelling growth opportunity. INQQ will allow investors to tap into the foundation of this growth powered by the smartphone-enabled digital consumer.”
Hector McNeil, co-founder and co-CEO of HANetf, added: “The real opportunity in India lies in digital-enabled consumption. Many broader indices include state-owned enterprises that historically have been a drag on growth whereas e-commerce business tend to be entrepreneur-led.”
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