An ETF based on the world’s most traded index, the Indian National Stock Exchange Fifty, more commonly known as the NIFTY 50, has received an ‘Investment Grade’ rating by independent research house Lonsec.
The ETF is ETFS Reliance India Nifty 50 ETF (ASX code: NDIA) launched in June 2019 as the first Indian-focused ETF launched on the ASX by ETF Securities.
Kris Walesby, Chief Executive Officer of ETF Securities Australia notes: “India has been increasingly moving into the spotlight of many investors in recent years. Over the past 12 years India has jumped from the 11th to the 5th largest economy in the world and is likely to take 3rd position within a decade. This makes it difficult to ignore India when building a global equity portfolio.
“The ETFS Reliance India Nifty 50 ETF is designed as a convenient, efficient and transparent way to access the upper echelons of the Indian stock market. Launched in 1995, the Nifty50 is one of the most traded indexes in the world. Over 23 years it has grown more than 11 times. It represents about 65 per cent of the market capitalisation of all the listed companies in India.
“The ‘Investment Grade’ rating indicates that Lonsec has conviction this financial product can generate risk adjusted returns in line with relevant objectives,” notes Mr Walesby.
According to Lonsec: “The underlying Index is a well-established benchmark commonly used amongst active Indian funds globally. The Fund represents an efficient and transparent way to gain exposure to the largest 50 Indian companies.”
Lonsec notes that direct Indian equities have traditionally been difficult for off-shore investors to access given India’s strict foreign investment rules.
“The Fund aims to provide investors with exposure to the 50 largest Indian companies by market capitalisation that are listed on the National Stock Exchange (NSE). It accounts for 13 sectors representing about 66.8% of the free float market capitalisation of the stocks listed on the NSE. Among the companies included in the Nifty 50 are HDFC Bank, Tata Consultancy Services, Housing Development Finance Corp, Reliance Industries and Hindustan Unilever.
More information on the ETFS Reliance India Nifty 50 ETF (NDIA) can be found here
About ETF Securities
ETF Securities is Australia’s second oldest ETF provider and the only truly independent ETF manager. Founded in 2003 the firm uses transparent and cost-effective exchange traded products (ETPs) to enable Australian investors to achieve their desired outcomes, while also intelligently diversifying their portfolios.
It offers products across four main categories: Future Present, Yield, International, and Commodities. The total funds under management of all ETF Securities products now stands at A$1.8 billion (as at 15 November 2019).
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