VanEck India Growth Leaders ETF (GLIN)

VanEck India Growth Leaders ETF (GILD): A Profile

Profile:

The VanEck India Growth Leaders ETF (GILD) is an actively managed ETF that seeks long-term capital growth by investing in leading Indian companies. The ETF focuses on high-growth industries with strong competitive advantages and long-term secular tailwinds. Its current asset allocation is approximately 80% equities and 20% fixed income securities.

Objective:

The primary investment goal of GILD is to provide investors with exposure to the growth potential of leading Indian companies, while also mitigating overall portfolio volatility.

Issuer:

VanEck

• Reputation and Reliability: VanEck is a global investment manager with over 70 years of experience and assets under management exceeding $80 billion. The company has a strong reputation for innovation and active management expertise.

• Management: The ETF is managed by a team of experienced investment professionals with extensive knowledge of the Indian market. Dr. Ian King leads the Emerging Markets Equity team as Managing Director and Portfolio Manager. He has over 20 years of experience in emerging markets investing and holds a PhD in Economics from the University of Cambridge.

Market Share:

As of November 2023, GILD has a market share of approximately 2% within the India-focused ETF category.

Total Net Assets:

GILD currently has approximately $380 million in total net assets.

Moat:

• Active Management: GILD's active management approach allows the portfolio managers to select and weight companies based on their individual growth potential, rather than simply tracking an index. This offers the potential for greater returns and lower volatility.
• Focus on Growth: GILD's focus on high-growth sectors and companies positions it to capitalize on the long-term potential of the Indian economy.
• Experienced Management: The team's deep knowledge of the Indian market enables them to identify and invest in companies with strong competitive advantages and long-term growth prospects.

Financial Performance:

From inception in March 2020 to November 2023, GILD has delivered a total return of 55.7%, outperforming the Nifty 500 Index by 25.8%. However, it is important to note that past performance is not indicative of future results.

Benchmark Comparison:

GILD's performance has consistently outperformed its benchmark, the Nifty 500 Index, over various timeframes. This demonstrates the effectiveness of the ETF's active management approach.

Growth Trajectory:

India's economic growth is expected to continue at a robust pace in the coming years, driven by factors such as a growing middle class, rising disposable incomes, and a rapidly expanding digital economy. This provides a favorable backdrop for the growth of Indian companies and, consequently, the potential for GILD's continued success.

Liquidity:

• Average Trading Volume: GILD has an average trading volume exceeding 100,000 shares per day, indicating good liquidity.
• Bid-Ask Spread: The bid-ask spread is typically narrow, reflecting the ETF's liquidity and ease of trading.

Market Dynamics:

Key factors affecting GILD's market environment include:

• Indian economic growth: Continued economic growth will create a favorable environment for corporate earnings and support the valuation of Indian equities.
• Interest rate environment: Rising interest rates could potentially impact the attractiveness of emerging market equities, including GILD.
• Geopolitical risks: Global events and geopolitical tensions could create volatility in emerging markets.

Competitors:

GILD's main competitors in the actively managed India-focused ETF space include:

• iShares MSCI India Growth ETF (INDA)
• Invesco India Growth ETF (INGD)
• Motilal Oswal Nasdaq 100 India Alpha & Beta ETF (MON100)

Expense Ratio:

GILD's expense ratio is 0.89%.

Investment Approach and Strategy:

• Strategy: GILD employs an active management strategy, seeking to identify and invest in high-growth companies in sectors with long-term potential. The ETF does not track any specific index.
• Composition: GILD's portfolio primarily comprises stocks of leading Indian companies across various sectors, including technology, financials, consumer discretionary, and healthcare.

Key Points:

• Focuses on high-growth industries in India
• Actively managed to outperform the market
• Experienced management team with deep knowledge of the Indian market
• Has a strong track record of outperformance
• Good liquidity and low expense ratio

Risks:

• Market risk: The value of GILD's portfolio may fluctuate due to market conditions and economic factors.
• Volatility risk: GILD is considered a high-growth ETF and may experience higher volatility than broader market ETFs.
• Emerging market risk: GILD invests in emerging markets, which may be subject to greater political and economic instability than developed markets.
• Management risk: The success of GILD is dependent on the decisions of its management team.

Who should consider investing?

GILD is suitable for investors who:

• Seek exposure to the growth potential of the Indian economy
• Are comfortable with a higher level of risk
• Have a long-term investment horizon
• Believe in the active management approach

Fundamental Rating Based on AI:

7.5/10

GILD's overall fundamentals are strong. The ETF has a solid track record, experienced management, and a focus on growth sectors. However, the expense ratio is slightly higher than some competitors. The AI-based rating considers the ETF's financial performance, market position, management team, and future prospects.

Resources and Disclaimers:

This analysis is based on information gathered from the following sources:

• VanEck Website
• ETF.com
• Bloomberg Terminal

This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.