Columbia India Consumer ETF (INCO)

ETF Columbia India Consumer ETF: A Summary

Profile:

Columbia India Consumer ETF (NYSE: INCO) focuses on Indian consumer companies, aiming to track the performance of the MSCI India Consumer Staples 20/40 Index. It primarily invests in large- and mid-cap companies across various consumer staples sectors, including food, beverages, personal care, and household products.

Objective:

INCO's primary investment goal is to provide long-term capital appreciation by investing in a diversified portfolio of Indian consumer staples companies.

Issuer:

Columbia Threadneedle Investments manages INCO.

Reputation and Reliability:

Columbia Threadneedle Investments is a reputable asset management firm with over $638.7 billion in assets under management as of November 2023. They have a long-standing track record of managing successful ETFs and mutual funds.

Management:

The ETF is managed by a team of experienced investment professionals with deep knowledge of the Indian market and consumer sector.

Market Share:

INCO has a market share of approximately 1.5% in the Indian consumer staples ETF space.

Total Net Assets:

INCO has total net assets of approximately $145 million as of November 2023.

Moat:

The ETF's competitive advantages include its focus on a high-growth sector, access to a diverse range of Indian consumer staples companies, and experienced management team.

Financial Performance:

INCO has delivered a cumulative return of 10.64% over the past three years, outperforming its benchmark index by 2.36%.

Growth Trajectory:

The Indian consumer staples sector is expected to grow steadily in the coming years, driven by rising disposable income, increasing urbanization, and changing consumer preferences.

Liquidity:

INCO has an average daily trading volume of approximately 100,000 shares, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread for INCO is typically around 0.1%, which is considered tight.

Market Dynamics:

Factors affecting the ETF's market environment include economic growth in India, consumer spending trends, and competition from other consumer staples companies.

Competitors:

Key competitors include iShares MSCI India Consumer Staples ETF (IDU) and Invesco India Consumer ETF (INPX).

Expense Ratio:

The expense ratio for INCO is 0.65%.

Investment Approach and Strategy:

INCO employs a passively managed investment approach, tracking the performance of its underlying benchmark index. It invests primarily in large- and mid-cap Indian consumer staples companies.

Key Points:

• Invests in a diversified portfolio of Indian consumer staples companies.
• Aims to provide long-term capital appreciation.
• Managed by a team of experienced investment professionals.
• Competitive expense ratio.
• Moderate liquidity.

Risks:

• Market risk associated with the Indian consumer staples sector.
• Currency risk associated with investing in Indian rupees.
• Political and economic risks in India.
• Volatility risk inherent in equity markets.

Who Should Consider Investing:

• Investors seeking exposure to the Indian consumer staples sector.
• Investors with a long-term investment horizon.
• Investors who believe in the growth potential of the Indian economy.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, INCO receives a Fundamental Rating of 7.5 out of 10. This rating indicates that the ETF has a strong fundamental profile with good long-term growth potential.

Resources and Disclaimers:

• Columbia Threadneedle Investments Website: https://www.columbiathreadneedleus.com/
• INCO ETF Fact Sheet: https://us.columbiathreadneedle.com/docs/default-source/etfs/fact-sheets---passive/inco-fs.pdf
• MSCI India Consumer Staples 20/40 Index: https://www.msci.com/market-classification/indices/msci-india-consumer-staples-20/40-index/
• Disclaimer: 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.