The Invesco group’s exchange-traded fund provider PowerShares Capital Management, which offers more than 100 US and international ETFs, has announced the launch of trading of the PowerShar
The Invesco group’s exchange-traded fund provider PowerShares Capital Management, which offers more than 100 US and international ETFs, has announced the launch of trading of the PowerShares India Portfolio on the NYSE Arca electronic trading platform.
‘PowerShares India ETF is based on a specialised index designed to address real-world regulatory constraints encountered when investing in Indian markets,’ says Bruce Bond, president and chief executive of PowerShares.
‘Powered by one of the fastest-growing economies and the second largest population in the world, we believe the Indian equity markets present an attractive investment opportunity. We believe the PowerShares India Portfolio provides a compelling choice for investors seeking relatively low-cost access to a portfolio of Indian securities.’
The PowerShares India Portfolio will provide exposure to India’s growing marketplace through investment in local equities and is designed to trade at or near net asset value.
The fund is based on the Indus India Index, which is compiled by Indus Advisors and is designed to track the performance of the Indian equity markets as a whole with representation across information technology, health sciences, financial services, heavy industry, consumer products and other market segments.
The rules-based index is reconstituted and rebalanced quarterly, and selects 50 components from a universe of companies listed on the National and Bombay Stock Exchanges.
‘Because India imposes certain restrictions on foreign holdings, any investible India index must explicitly address these limits, as well as current foreign holdings,’ says Ranga Nathan, managing director of Indus Advisors.
‘The Indus India Index does this through a propriety measure of capitalisation for foreign investment that we believe is a more accurate representation of a company’s capitalisation available for foreign ownership than market capitalisation and float-weighted methodologies.’