HANetf is set to launch an ETF offering investors ESG-screened exposure to the rapid digitation of India. 

According to the firm, the Article 8-classified INQQ India Internet & E-commerce ESG-S UCITS ETF (INQQ) is Europe's first ESG-screened ETF targeting India's growing internet sector.

Its strategy is to capture companies benefitting from increasing online consumption by India's "growing middle class" and provide ease of access to owning Indian securities listed only on the Bombay Stock Exchange or National Stock Exchange of India.

HANetf calls time on frontier markets e-commerce ETF due to low AUM

The firm noted that India's BSE SENSEX has returned 90% compared to the S&P 500's 58%, and the IMF expects the country's economy to grow by 6%, making it the "fastest growing major economy".

India was also described by HANetf as the "fastest growing e-commerce market" because of the seven million new smartphone users a month and the expansion to over 98% of the vast population being able to access 4G.

The ETF tracks the INQQ The India Internet & E-commerce ESG Screened index, which has full exposure to Indian companies.

HANetf has partnered with EMQQ Global for the launch. They previously collaborated on the EMQQ Emerging Markets Internet & E-commerce UCITS ETF in 2018, which provides exposure to the growth of online consumption in the developing world.

Both EMQQ and INQQ have US-listed sister ETFs. The total assets under management amount to around $470m.

HANetf launches European Green Deal ETF

Hector McNeil, co-founder and co-CEO of HANetf, said: "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."

Kevin Carter, founder and CIO of EMQQ Global, added: "While developed nations have experienced the luxury of the internet for decades, over a billion consumers in India are only just beginning to go online.

"This booming consumer momentum, coupled with the country's strong dedication to scaling physical and digital infrastructure in the coming years, is creating a compelling growth opportunity. We believe that the India internet investment story is one that cannot and should not be ignored."