BlackRock has launched the iShares MSCI lndia UCITS ETF (NDIA LN), providing exposure to the large- and mid-cap universe of Indian equities.

NDIA provides exposure to approximately 85% of the Indian equity universe.

The fund, listed on London Stock Exchange with a further listing pending on Xetra, may be suitable for investors seeking growth opportunities as part of a broader equity portfolio.

The ETF tracks the MSCI Emerging Markets India Index, which currently comprises 79 companies and covers around 85% of the Indian stock market. It is physically replicating which means the fund holds the securities of its underlying index as opposed to generating synthetic exposure through the use of swaps.

The three largest sector exposures are to IT consulting, which has a weight of 16.4%, and to mortgage finance and oil & gas refining, each with a weight of 10.9%. Diversified banks follow with a 9.2% weight, and automobile manufacturers account for 6.9%.

The five largest constituents are Housing Development Finance (9.2%), Reliance Industries (8.4%), Infosys (6.8%), Tata Consultancy (5.2%) and Hindustan (3.3%).

The fund trades in US dollars and has a total expense ratio (TER) of 0.65%, making it the cheapest ETF in Europe to offer a pure-play on Indian equities. Income generated within the fund’s portfolio is treated as accumulating.

The largest ETF currently in Europe to provide exposure to the Indian equity market is the Xtrackers Nifty 50 UCITS ETF (XNID LN) which is just shy of $200 million in assets under management. It tracks the Nifty 50 Index, the National Stock Exchange of India’s benchmark broad based stock market index. The fund is however also the most expensive within its category with a TER of 0.85%.