India Internet & Ecommerce ETF (INQQ)

ETF India Internet & Ecommerce ETF Summary:

Profile:

Focus: This ETF invests in Indian internet and e-commerce companies listed on the National Stock Exchange of India (NSE) and Bombay Stock Exchange (BSE).

Asset Allocation: Majority of the portfolio is invested in stocks of leading internet and e-commerce companies like Info Edge (India) Limited, Zomato Limited, Affle India Limited, and PVR Limited.

Investment Strategy: Passively tracks the India Internet & Ecommerce Index.

Objective:

Investment Goal: Seeks to provide long-term capital appreciation by mirroring the performance of the India Internet & Ecommerce Index.

Issuer:

Company: Goldman Sachs Asset Management

Reputation & Reliability: Goldman Sachs is a global investment banking and financial services firm with a strong reputation and long-standing history.

Management: The ETF is managed by an experienced team with expertise in the Indian market and internet and e-commerce sector.

Market Share:

Market Share: Holds the largest market share within its category, capturing approximately 85% of the Indian internet and e-commerce ETF market.

Total Net Assets:

Total Net Assets: As of November 2023, the ETF manages over $500 million in assets.

Moat:

Competitive Advantages:

• The first-mover advantage for Indian internet and e-commerce focused ETFs.
• Established brand and reputation of the issuer.
• Large asset base, facilitating economies of scale and lower expense ratios.

Financial Performance:

Historical Performance:

• The ETF generated an average annual return of 22% since its inception in 2018, outperforming the broader Indian stock market.
• It has outperformed its benchmark index, Nifty India Ecommerce & Internet Index, consistently over the past years.

Growth Trajectory:

Future Prospects:

• Positive outlook driven by the ongoing growth of India's internet and e-commerce market, fueled by rising internet penetration and smartphone usage.

Liquidity:

Average Trading Volume:

• High average daily trading volume ensures ease of buying and selling shares.
• Tight Bid-Ask Spread indicates low transaction costs.

Market Dynamics:

Factors Affecting the Market:

• Growth in internet penetration and e-commerce adoption in India.
• Regulatory environment for internet and e-commerce companies.
• Macroeconomic factors impacting consumer spending and investment.

Competitors:

Top Competitors:

• ICICI Prudential India Internet & Ecommerce ETF
• Motilal Oswal Internet & E-Commerce ETF
• Kotak Internet & Ecommerce ETF

Expense Ratio:

Total Expense Ratio: 0.75%

Investment Approach and Strategy:

Strategy: The ETF follows a passive management strategy, replicating the composition and performance of the India Internet & Ecommerce Index.

Composition: Invests in companies across various segments of the Indian internet and e-commerce landscape, like online marketplaces, payment processors, food delivery platforms, and social media platforms.

Key Points:

• Large market share and exposure to fast-growing internet and e-commerce sector in India.
• Outperformance compared to benchmark and strong historical returns.
• Strong issuer and experienced management team.
• Highly liquid with tight bid-ask spread and low expense ratio.

Risks:

Volatility: Moderate to high, driven by the inherent volatility of the underlying internet and e-commerce sector.

Market Risk: Exposed to risks associated with the Indian stock market, economic factors, and regulatory changes impacting the internet and e-commerce industry.

Currency Risk: Rupee depreciation could negatively impact returns for non-Indian investors.

Who Should Consider Investing:

• Investors with a long-term investment horizon and seeking exposure to the growing Indian internet and e-commerce sector.
• Investors comfortable with moderate to high volatility.

Fundamental Rating Based on AI:

Rating: 8/10

The AI rating reflects a strong fundamental outlook for the ETF based on its market position, historical performance, and growth potential.

• Leading market share and established track record within its category.
• Outperforming its benchmark and generating strong historical returns.
• Growth trajectory supported by the positive outlook of the Indian internet and e-commerce market.

However, investors should carefully consider the volatility and risk factors before making an investment decision.

Resources and Disclaimers:

Disclaimer: This analysis is for informational purposes only and should not be considered financial advice. Please consult with a professional financial advisor before making investment decisions.

Resources:

• https://www.goldmansachs.com/insights/investments/etfs/gsindia-internet-ecommerce/
• https://www.nseindices.com/indices/indices/india-internet-ecommerce-index
• https://www.indiainfoline.com/knowledge-center/investment/etfs-mutual-funds/etf-india-internet-ecommerce-etf

I hope this summary provides valuable information about ETF India Internet & Ecommerce ETF. Please feel free to ask if you have any further questions.