Emerging market (EM) asset manager ZyFin Holdings (ZyFin), along with its London-based ETF distribution partner First Trust Global Portfolios, today announced listing of Europe's first physically-backed Indian equity ETF.
The fund is available on London Stock Exchange (LSE) and Deutsche Boerse. The LAM ZyFin MSCI India UCITS ETF offers investors exposure to Indian equities, denominated in US dollars.
The fund will use a physical replication strategy in order to track as closely as possible the returns of the index after deduction of fees and expenses, the company statement said.
The index is designed to measure performance of large and mid-cap segments of the Indian equity market.
Comprising 74 constituents, the index covers nearly 85 per cent of the free float-adjusted market capitalisation in the country, reflecting the market's economic diversity, and has outperformed the MSCI India Index and MSCI Emerging Markets Index consistently over 16 years, it said.
The index is rebalanced quarterly to account for changes in the market capitalisation of an index component in terms of the number of shares issued and the free float or its sector classification.
The indices are designed and maintained to take into consideration 10 per cent and 40 per cent concentration constraints on funds subject to UCITS directives.
"We are excited to be launching Europe's first physically-backed Indian equity ETF...Offering investors cost- effective and transparent access to investment opportunities in emerging markets," Executive Chairman at ZyFin Sanjay Sachdev said.
"With economic growth for the current and forthcoming year projected at 7.4 per cent (IMF), a huge workforce and growing middle class, the investment case for India is compelling," he added.
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