As traditional market access routes to India evolve, investors will be able to gain direct exposure to India through a newly-launched exchange-traded fund (ETF).
The iShares MSCI India Ucits ETF (NDIA) will track the MSCI India Index, which measures the performance of large and mid-cap segments of the Indian market, accounting for approximately 85% of the Indian equity universe.
India is a critical component in emerging markets, comprising nearly 10% of the MSCI Emerging Markets Index, but ongoing liquidity and access restrictions, exacerbated by the delisting of offshore derivatives, create challenges for offshore investors, Blackrock said in a statement.
The launch of the fund will allow investors to maintain their local market exposure to India, at a time when access to onshore Indian equities is becoming more difficult,
The iShares MSCI India Ucits ETF is the first physically-replicating Ucits ETF to track an Indian equity index, and is priced at 65bps.