India ETF listing from Satrix

Simon BrownETF Blog, Latest

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.

India ETF holdings

India ETF holdings

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

ETF name Satrix MSCI India ETF
ETF issuer Satrix
Proposed listing 24 February 2022
Total investment cost 0.82%
ETF Benchmark MSCI India NET TR Index
ETF being used as feeder iShares MSCI India UCITS ETF
Tax-free savings account Allowed
Dividends Total return (dividends will automatically be reinvested)

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