PowerShares Capital Management has announced the listing of the PowerShares India Portfolio, an exchange traded fund (ETF) expected to begin trading on the NYSE Arca later this month.
Unlike other ETFs which propose to use derivatives and/or notes in an attempt to provide indirect exposure to India, the PowerShares India Portfolio will provide direct and diversified exposure to India’s growing marketplace by owning local equities.
The index on which the PowerShares India Portfolio is based is designed to be the proxy for investable assets into the Indian market,” says Bruce Bond, president and CEO of PowerShares. “India is one of the fastest-growing economies in the world, and it also boasts the globe’s second-largest population and fourth-largest GDP.”
The PowerShares India Portfolio is based on the Indus India Index compiled by Indus Advisors LLC. The index is designed to track the performance of the Indian equity markets as a whole with representation across the information technology, health sciences, financial services, heavy industry, and consumer products segments.
The rules-based index is rebalanced quarterly and selects 50 components from a universe of companies based in India that are listed on the National and Bombay Stock Exchanges.
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