Pacer ETFs has expanded its global equity lineup with the launch of the Pacer ActiveAlpha India Quality ETF (NASDAQ:INDQ), a new strategy aimed at capturing India's long-term growth through a focused, factor-driven approach.
The actively managed ETF, launched last week as part of Pacer's Custom ETF Series, targets high-quality Indian companies using a blend of quality, value, and momentum factors — offering investors a differentiated way to access one of the world's fastest-growing major economies.
The strategy, developed in partnership with Mumbai-based ActiveAlpha, draws from the Nifty 500 Index and Nifty Microcap 250 Index. It then narrows this pool down to a concentrated portfolio of 20 to 30 stocks, selected through a composite scoring system designed to identify fundamentally strong companies positioned to benefit from India's structural growth tailwinds, including favorable demographics, rising consumption and infrastructure expansion.
Key features of the ETF:
- Focuses on a concentrated portfolio of approximately 20 to 30 Indian companies selected for quality, value and momentum characteristics
- Draws its investment universe from large-, mid- and micro-cap segments of the Indian equity market
- Employs a rules-based, factor-driven methodology developed by ActiveAlpha
- Rebalances quarterly, with weighting caps to maintain diversification while emphasizing top-ranked holdings
- Seeks to provide targeted exposure to India's long-term economic growth and increasing global relevance in equity portfolios
- Expense ratio of 0.88%
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