ETF Trends
ETF Trends

First, WisdomTree and PowerShares launched their India exchange traded funds (ETFs). Now iShares wants to join in the party, too. It filed a registration form with the Securities and Exchange Commission (SEC) last week.

iShares will have its work cut out, because the first fund to launch usually benefits from the pent-up investor demand, says Jeffrey Ptak for Morningstar. The WisdomTree India Earnings Fund (EPI), launched in February, was the first India ETF. Right out of the gate, it traded a million shares, reports Mariana Lemann for Ignites, and has since garnered assets of $85.7 million. The PowerShares India Portfolio (PIN) launched last week.

The iShares India will track the S&P India Nifty 50 Index, which tracks the equity performance of the top 50 companies by market cap that trade in the Indian market. Barclays Global Investors will aim for a 95% correlation to the index.

An iShares fund could gain a competitive advantage in pricing: the expense ratio for WisdomTree’s fund is 0.88%, while the PowerShares fund is 0.78%. The average expense ratio for the type of fund iShares will create is 0.61%.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.