WisdomTree believes the Indian equity market, which is the fourth largest in the emerging market, offers an exciting opportunity for investors.
The EFT and ETP sponsor sees positive growth fundamentals in India that are underpinned by favourable demographics, boosted fiscal spending, lower tax rates, and a stable political climate committed to reform.
Quality India tilt
The new Ucits ETF tracks the WisdomTree India Quality Index, focused on the top 33% of companies using a combined ranking of the three-year average ROA and ROE.
The index constituents are then weighted by market capitalisation. These factors have provided consistent exposure to quality stocks, offering the potential to deliver above average risk adjusted returns.
“We’re excited to be launching EPIQ, an innovative ETF that provides a quality tilt on the Indian equity market,” said Nizam Hamid, ETF Strategist. “Our fund has the advantage of diversification, with over 100 constituents, and a broad sector exposure tilted towards the core drivers of growth in the Indian economy.
“With a favourable global macro environment, decisive policy making and exciting growth trends, India has a compelling strategic as well as tactical allocation investment case,” Hamid added.
Differentiated solution
Morgan Lee, head of European distribution, said: “Investors have expressed enthusiastic interest in gaining exposure to the Indian equity market via a physically replicating Ucits ETF as, up until now, investor choices have been limited.
“The addition of our quality titled methodology provides a differentiated solution for those looking to allocate towards this exciting market.”
The fund lists on the London Stock Exchange, following on from its listing on the Borsa Italiana and the Deutsche Börse last week.
