Simplify launches actively managed Indian equity ETF

Mar 8th, 2024 | By | Category: Equities

Simplify Asset Management has launched an actively managed equities ETF that seeks to tap into the investment opportunity presented by India’s dynamic economic growth and youthful demographics.

Equities India ETFs

India’s GDP is expected to grow at a rate of more than 6% per annum over the next five years. 

The Simplify Tara India Opportunities ETF (IOPP US) has been listed on NYSE Arca with an expense ratio of 0.70%.

India stands as one of the world’s rapidly expanding major economies, anticipated to sustain a GDP growth rate exceeding 6% over the next five years. With over 40% of its population under 24 years of age, the country presents highly promising demographics. Consequently, investors are increasingly recognizing India’s potential contribution to diversified international equity portfolios.

Investment approach

The fund is sub-advised by System Two Advisors, a New Jersey-based investment adviser with extensive experience investing in Indian equities.

The portfolio construction leans heavily on meticulous bottom-up research, evaluating potential inclusions based on their competitive edge, growth catalysts, management caliber, and expansion prospects.

Leveraging the insights of its 70 local market experts stationed across India, System Two Advisors curates a focused, high-conviction portfolio of 25-40 select companies, ensuring a high degree of active management.

Anupam Ghose, Managing Partner at System Two Advisors, commented: “What is surprising is how investors have gravitated towards passive India exposures, which are too often dominated by large, globally oriented stocks. To truly capture the India growth story, an actively managed approach is a must. An experienced active manager with people in the market who understand what makes India’s economy unique is better able to identify investment ideas tied to the country’s key drivers of growth, such as the rise in middle-class disposable income, digitization, and growth in manufacturing. We bring that understanding and are very pleased to be partnering with the forward-thinking team at Simplify to make IOPP available to all.”

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