First Trust, the seventh-largest U.S. issuer of exchange traded funds, could add to its lineup of single-country ETFs with an India ETF. Illinois-based First Trust has filed plans with the Securities and Exchange Commission for the First Trust ZyFin India Quality and Governance ETF.
“Companies will be evaluated for quality based on earnings volatility, leverage and return on equity, the prospectus said. The velocity or how much they trade relative to their free-float market capitalisation will be one key trigger for choosing shares,” according to the Economic Times.
Related: India ETFs Surge After $12.9bn Budget Proposal
Well-known and established funds in the India ETF space include the iShares MSCI India ETF (BATS: INDA), PowerShares India Portfolio (NYSEArca: PIN) and the WisdomTree India Earnings ETF (NYSE: EPI).
[related_stories]First Trust currently issues 11 single-country ETFs, including several emerging markets options.
Some market observers believe Indian stocks offer rebound potential. Over the short-term, India has benefited from cheap energy prices as the country is one of the largest importers of crude oil. Looking further out, economic reforms, including more business-friendly and growth-oriented policies, could help support growth over the medium-term.
Related: 3 India ETFs Rising Back to Health
Specifically, many argue that India’s favorable demographics will help support a growing economy. Over a third of India’s 1.3 billion people are between the ages of 15 and 34 with a median age of 27, compared to 37 in China, 38 in the U.S., 41 in developed Europe and 46 in Japan. India’s population is also expected to grow by 1.4%, compared to China’s 0.5% and 0.9% in the U.S.
For more information on India, visit our India category.