WisdomTree has listed the WisdomTree India Quality UCITS ETF (Xetra: WTDZ) on Deutsche Börse’s Xetra and Frankfurt exchanges. The fund offers smart beta exposure to Indian equities with a focus on quality companies. It has also been launched on the London Stock Exchange.
The listing of the WisdomTree India Quality UCITS ETF on the Deutsche Börse includes an accumulating and a distributing share class, with both trading in euros.
The underlying WisdomTree India Quality Index comprises 105 Indian companies that have been selected by strong return on assets (ROA) and return on equity (ROE) performance. Constituents are weighted by free float market capitalisation with a security cap of 5% and a sector cap of 25%.
As of 31 January 2017 the index has 105 constituents with roughly 45% exposure to both the large-cap (greater than $10bn market cap) and mid-cap (between $2bn and $10bn market cap) market segments. Approximately 10% is in small cap stocks (less than $2bn market cap).
The largest sector exposures are information technology (22.7%), consumer staples (18.8%), health care (15.1%), consumer discretionary (12.5%) and industrials (8.9%).
The listing on the Deutsche Börse includes an accumulating and a distributing share class, with both trading in euros. The index is denominated in US dollars.
The fund’s total expense ratio (TER) is 0.73%.
While WisdomTree’s ETF is the first to market in Europe that provides access to quality-screened Indian equities, there are a number of funds available that track the broad market MSCI India Index. The largest is from Lyxor – the $1.4bn Lyxor UCITS ETF MSCI India USA (LON: INRL) is also one of the most expensive at 0.85% per annum. The cheapest, from Deutsche Asset Management, is the Db X-tracker MSCI India Index UCITS ETF (XCS5) with $105m and a TER of 0.75%. Both funds use synthetic replication.
The LAM ZyFin MSCI India UCITS ETF (LON: MIND), launched in September 2016, became the first Europe-listed ETF to offer access to Indian equities through direct physical replication. It costs 0.89%.