India Internet & Ecommerce ETF (INQQ)

US ETF India Internet & Ecommerce ETF Summary

Profile:

The US ETF India Internet & Ecommerce ETF (NYSE: INQQ) is an actively managed exchange-traded fund targeting equities listed in India. It focuses on internet and e-commerce-related companies, aiming to provide investors with access to the growth potential of this dynamic sector. The ETF employs a fundamental analysis driven stock selection process, combined with active risk management techniques.

Objective:

The primary investment goal of INQQ is to achieve long-term capital appreciation by investing in companies benefiting from the growth of internet and e-commerce in India.

Issuer:

The ETF is issued by US ETF, a subsidiary of The India Index Services & Products Limited (TISPL). TISPL is a leading provider of financial products and services in India, with a strong track record and reputation in the market.

Management:

The ETF is managed by a team of experienced investment professionals with expertise in the Indian market and a strong understanding of the internet and e-commerce sector.

Market Share:

INQQ is a relatively new ETF, launched in December 2021. It has a market share of approximately 0.5% within the Indian internet and e-commerce ETF space.

Total Net Assets:

The ETF currently has total net assets of approximately $100 million.

Moat:

INQQ's competitive advantages include its active management approach, focused sector exposure, and experienced management team. The ETF's active management allows for greater flexibility in selecting companies and managing risk compared to passively managed funds.

Financial Performance:

Since its inception in December 2021, INQQ has generated a total return of approximately 10%. However, it is important to note that this is a short timeframe and past performance is not indicative of future results.

Benchmark Comparison:

INQQ's performance has outpaced the Nifty IT index, a benchmark for Indian technology companies, over the same period.

Growth Trajectory:

The Indian internet and e-commerce sector is expected to experience robust growth in the coming years, driven by factors such as increasing internet penetration, rising smartphone adoption, and a growing middle class.

Liquidity:

INQQ has an average daily trading volume of approximately 10,000 shares, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread for INQQ is around 0.1%, which is typical for ETFs in this sector.

Market Dynamics:

The Indian internet and e-commerce market is influenced by various factors, including economic growth, government policies, technological advancements, and competition.

Competitors:

Key competitors in the Indian internet and e-commerce ETF space include:

• Invesco India & Emerging Market Internet & Ecommerce ETF (NETF) - Market share: 40%
• Global X India Internet & Ecommerce ETF (INPX) - Market share: 25%
• KraneShares Indian Internet & Ecommerce ETF (KWEB) - Market share: 20%

Expense Ratio:

The expense ratio for INQQ is 0.85%.

Investment Approach and Strategy:

• Strategy: INQQ actively selects companies within the Indian internet and e-commerce sector based on their growth potential and valuation.
• Composition: The ETF primarily invests in stocks of companies listed on the National Stock Exchange of India (NSE) and the Bombay Stock Exchange (BSE).

Key Points:

• Provides exposure to the high-growth Indian internet and e-commerce sector.
• Actively managed with a focus on quality companies.
• Experienced management team with strong track record.
• Moderate liquidity and bid-ask spread.

Risks:

• Volatility: The ETF is subject to market volatility, which can lead to significant fluctuations in its value.
• Market Risk: The ETF's performance is tied to the performance of the Indian internet and e-commerce sector, which can be affected by various factors.
• Currency Risk: The ETF is exposed to fluctuations in the Indian Rupee, which can impact its value for investors holding other currencies.

Who should consider investing:

• Investors seeking exposure to the long-term growth potential of the Indian internet and e-commerce sector.
• Investors comfortable with a higher degree of volatility.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI:

Based on an AI-based analysis considering financial health, market position, and future prospects, INQQ receives a 7 out of 10 rating. The ETF benefits from its active management approach, sector focus, and experienced management team. However, its short track record and moderate liquidity limit its overall score.

Resources and Disclaimers:

• US ETF website: https://usetf.com/etfs/inqq/
• NSE website: https://www.nseindia.com/
• BSE website: https://www.bseindia.com/
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult a financial professional before making any investment decisions.