HANetf is set to introduce an SFDR Article 8 India internet and e-commerce ETF, which will be the first of its kind in Europe.
The fund, named the INQQ India Internet & Ecommerce ESG-S UCITS ETF, will launch in partnership with EMQQ Global, a San Francisco-based company which invests in emerging markets technology companies.
HANetf said the fund aims to grow with the digitisation and growth of India, especially due to the expansion of India’s middle class which has grown to 400 million in the past 15 years. Currently, HANetf cites 98% of the population holding access to 4G networks, which it believes creates strong opportunities for more digital infrastructure.
Kevin Carter, founder and CIO of EMQQ Global, said: “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. We believe that the India Internet investment story is one that cannot and should not be ignored. INQQ will allow investors to tap into the foundation of this growth being powered by the smartphone-enabled digital consumer.”
The fund will follow the India Internet & Ecommerce ESG Screened index (INQQ ETF), which exclusively has holdings in Indian companies. At least 50% a holding’s revenue will be required to come from the internet or e-commerce.
Hector McNeil, co-CEO and co-founder of HANetf, said: “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. The INQQ ETF will provide a way for investors to capture this exciting segment of the Indian market.”