Exchange-traded fund (ETF) manager BetaShares will launch its new India Quality ETF, which will give investors access to a diversified portfolio of high-quality Indian companies.
BetaShares pointed out India is among the fastest-growing major economies in the world, with gross domestic product growth projections of 7 per cent annually to 2023.
It said India has a significant footprint in sectors such as information technology, manufacturing and agriculture, and is home to companies such as Tata and Infosys.
BetaShares chief executive Alex Vynokur said: “India is one of the fastest-growing and most exciting global economies. Our India ETF will give investors a great way to access this fascinating market, with a carefully screened portfolio of high-quality Indian companies.
“India is a substantially less efficient market than those in the developed world, which provides the opportunity for significant outperformance in returns compared to a pure market capitalisation index approach.
“Our methodology provides investors with the return potential that comes from a focus on quality companies, along with the cost-efficiency and transparency that is available from a passive indexing approach.”
He noted BetaShares’ approach also reduces the potential for a small number of companies to dominate returns as India is one of the most concentrated stock markets in the world.
“We expect strong interest from our clients in the BetaShares India Quality ETF as a part of their international equities portfolios,” he added.