WisdomTree announced the listing of the WisdomTree India quality Ucits ETF as an accumulating and distributing share class on Deutsche Börse. It provides a smart beta strategy that allows investors to invest in Indian equities, with a focus on quality stocks measured against their above-average ROA and ROE.
India is the world’s seventh-largest economy and the fourth-largest stock market among the emerging markets. With an annual growth of 7.5% in the recent past, the country is estimated to have the world’s fastest growth among the major economies over the next five years at an average of 8.1%. WisdomTree believes that these positive fundamentals are supported by favourable demographic conditions, a substantial increase in government expenditures, tax cuts and a stable political and reform-friendly climate.
WisdomTree India quality index focuses on the top 33% of companies that are based on a combined ranking of the average return on assets and equity over the last three years.
“We are excited about the launch of the WisdomTree India Quality Ucits ETF, an innovative fund that focuses on the quality of the Indian equity market”, said ETF strategist Nizam Hamid.
“With a view to the favourable global macro environment, resolute policy making, and stimulating growth trends, there are many good reasons for strategic and tactical allocation in India”, added Nizam Hamid.
Morgan Lee, head of European distribution commented, “Investors had expressed a strong interest in gaining access to India’s stock market through a physically replicating Ucits ETF. With our approach to quality, we offer a differentiated solution to investors who want to invest in this exciting market.”