White-label ETF issuer HANetf is set to launch Europe’s first ETF capturing India’s internet and eCommerce industries.
The INQQ India Internet & Ecommerce ESG-S UCITS ETF (INQQ) will list on the London Stock Exchange within the coming weeks followed by the Deutsche Boerse and Euronext Milan, with a total expense ratio (TER) of 0.86%.
INQQ will track the eponymous INQQ index of 26 Indian companies deriving at least 50% of their revenue from sectors including internet services, online retail, broadcasting, media, advertising, travel, gaming, search engines, payments and social networks.
The index applies a modified market cap-weighted methodology, rebalanced semi-annually with the largest constituent capped at an 8% weighting.
The ETF will mirror an existing equivalent ’40-Act’ by EMQQ Global, which is 30.2% exposed to fintech, 15.4% to eCommerce and 13.7% to food delivery sectors.
INQQ will also be ESG-screened and categorised Article 8 under the Sustainable Finance Disclosure Regulation (SFDR).
Kevin Carter, founder and CIO of EMQQ Global, commented: "While developed nations have experienced the luxury of the internet for decades, over a billion consumers in India are only just beginning to go online.
“This booming consumer momentum, coupled with the country’s strong dedication to scaling physical and digital infrastructure in the coming years, is creating a compelling growth opportunity.”
Hector McNeil, co-founder and co-CEO of HANetf, added: “India's prominence in the global economy has become impossible to overlook. Optimism surrounding its economy is on the rise, with many eyeing India as a destination for ‘China plus one’ diversification strategies, highlighting the nation's growing significance in the global economy.
“But the real opportunity in India, we believe, is digital-enabled consumption.”
INQQ will become the firms’ third partnership and comes five years after the launch of the $178m EMQQ Emerging Markets Internet & Ecommerce UCITS ETF (EMQQ), HANetf’s first UCITS ETF.
The FMQQ Next Frontier Internet & Ecommerce ESG-S UCITS ETF (FMQQ) launched in January 2022 but is set to delist on 13 November after gathering just $1.5m assets under management (AUM).