20 NOV, 2023
By Johanna Zidani from RankiaPro Europe
In a pioneering move, HANetf, Europe’s trailblazing white-label UCITS ETF and ETC platform, has introduced INQQ India Internet & Ecommerce ESG-S UCITS ETF (ticker: INQQ) – the continent’s inaugural ESG-screened ETF dedicated to India’s digital frontier. This ETF aims to provide investors with precise exposure to India’s meteoric digitization, positioning itself as the go-to investment vehicle for those looking to capitalize on the country’s economic surge.
As the world’s most populous nation, India is often dubbed the “new China,” and its staggering economic growth is catching global attention. The IMF predicts a remarkable 6% growth for India’s economy this year, making it the fastest-growing major economy in 2023 and 2024. Despite challenges in emerging markets, India’s stock market has thrived, boasting a 93% return on the BSE SENSEX over the past 5 years, outpacing the S&P 500’s 58%.
This success is fueled by the expansion of India’s middle class, welcoming 400 million new members over the last 15 years. This demographic shift has empowered a new generation of consumers with increased spending capacity. Concurrently, India’s digital infrastructure has made significant strides, with over 98% of the population accessing 4G and a staggering 7 million new smartphone users every month. The result: India’s internet economy is poised to surpass the nation’s overall GDP.
INQQ is strategically positioned to capture this consumer-driven digital revolution. Tracking the INQQ The India Internet & Ecommerce ESG Screened Index (INQQETF), this ETF is ESG-screened, ensuring 100% exposure to Indian companies. Holdings are rigorously scrutinized, guaranteeing a minimum of 50% revenue from internet and/or ecommerce activities. Given the challenge of locating many Indian companies listed locally, INQQ emerges as the ideal avenue for targeted exposure to India’s digitization.
HANetf’s previous success with EMQQ Emerging Markets Internet & Ecommerce UCITS ETF (EMQQ) in 2018, in partnership with EMQQ Global, underlines their expertise in tapping into the growth of online consumption in the developing world. With approximately $470 million AUM between EMQQ and INQQ’s US-listed counterparts, HANetf’s UCITS version of EMQQ currently commands $170 million AUM. Notably, HANetf has successfully converted over 10 US-listed ETFs into Irish-domiciled UCITS ETFs through its innovative white-label platform. The launch of INQQ signals yet another milestone in HANetf’s commitment to providing investors with cutting-edge opportunities in the dynamic landscape of global finance.
“We are delighted to launch INQQ India Internet & Ecommerce ESG-S UCITS ETF (ticker: INQQ) with EMQQ Global. 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. Many broader indices include state owned enterprises which historically have been a drag on growth whereas e-commerce business tend to be entrepreneur led.”
Hector McNeil, Co-Founder and Co-CEO of HANetf