WisdomTree has launched a smart-beta India ETF, the WisdomTree India Quality UCITS ETF, listed on the London Stock Exchange.
The ETF will offer exposure to Indian quality stocks that have above-average return on assets (ROA) and return of equity (ROE). Tracking the WisdomTree India Quality index, the ETF will select the top 33% of stocks that have the highest scores on ROA and ROE.
The firm pointed to the favourable fundamentals in India as another factor for launching the ETF - arguing that, with International Monetary Fund stimulus, stable politics and favourable demographics, India would be the fastest growing economy over the next five years.
Nizam Hamid, ETF strategist at WisdomTree, said: "We are excited to be launching EPIQ, an innovative ETF that provides a quality tilt on the Indian equity market.
"Our fund has the advantage of diversification, with more than 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."
Morgan Lee, head of European distribution at WisdomTree, 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 tilted methodology provides a differentiated solution for those looking to allocate towards this exciting market."
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