Satrix is launching an India feeder Exchange Traded Fund (ETF) in IPO until 15 February 2022. The index comprises large- and mid-cap stocks covering around 85% of the Indian stock market and will use the iShares MSCI India UCITS ETF as the feeder.
India is the worlds sixth-largest economy and the worlds fastest growing with both a stable political and economic environment.
Many listed stocks in India are operational in Asia making for a great regional beachhead. For example Hindustan Unilever in a subsidiary of Unilever which aside from its own stable of fast-moving consumer goods also acquired GlaxoSmithkline’s India’s consumer business which was concluded in 2020.
The top sector is financials at 23.79% followed by information technology at 19.77% and energy at 11.29% making up just over half the ETF.
Buying during the initial public offering (IPO) means you avoid paying fees to buy the ETF. Price will be determined just ahead of the listing and that will determine the quantity of ETFs you receive.
For those keen to buy this ETF, remember you may already have India exposure via an emerging market ETF, but the exposure (certainly to individual stocks) is small.
Dividend yieldTotal return (dividends will be reinvested
|Satrix MSCI India ETF
|24 February 2022
|Total investment cost
|MSCI India NET TR Index
|ETF being used as feeder
|iShares MSCI India UCITS ETF
|Tax-free savings account
|Total return (dividends will automatically be reinvested)
At Just One Lap, we are big fans of passive investment using ETFs. In this weekly blog, we discuss ETFs on the local market and the factors you need to consider when choosing an ETF. If you have wondered how one ETF differs from another, this is where you can find out. We explain which index each ETF tracks, what type of portfolio could benefit from holding each ETF, and how the costs will affect your bottom line.