US asset manager BlackRock has launched the iShares MSCI India Ucits ETF, which will track Indian equity index.
The iShares MSCI India UCITS ETF (NDIA) will track the MSCI India Index, which measures the performance of large and mid-cap segments of the Indian market, accounting for approximately 85% of the Indian equity universe.
As traditional market access routes to India evolve, investors can still gain direct exposure to India through a newly-launched exchange-traded fund.
India is a critical component in emerging markets, comprising nearly 10% of the MSCI Emerging Markets Index, but ongoing liquidity and access restrictions, exacerbated by the delisting of offshore derivatives, create challenges for offshore investors, BlackRock said.
The launch of the fund will allow investors to maintain their local market exposure to India, at a time when access to onshore Indian equities is becoming more difficult.
David Moroney, Head of iShares EMEA products at BlackRock, said: “Investors value the granularity and versatility of ETFs as portfolio allocation tools. This fund is the latest addition to our 42-strong range of single-country ETFs in Europe, providing investors with transparent and cost-effective local market exposure to India at a time when access to onshore Indian equities is getting more difficult.
“During periods of uncertainty, such as this, ETFs provide investors with liquid access to markets while keeping the costs of entry low.”
The iShares MSCI India UCITS ETF is the first physically-replicating UCITS ETF to track an Indian equity index, and is priced at 65bps.