Posts for Ticker ‘India’

New ETF To Track India (WSDT, IIF, IFN, INP, EPI)

WisdomTree Investments (WSDT-OTC) made a fairly significant announcement yesterday for those who trade ETF’s.  The ETF manager is going to launch an ETF in the latter part of February that tracks the Indian stock market, one of the larger emerging markets that is not exactly the easiest for Americans and non-Indians to invest in.

This will have the proposed tick of "EPI" on the NYSE.  What is most interesting is that it is said to be an "earnings weighted ETF" and it will offer pure exposure to local Indian securities rather than just the US-listed ADR securities.  This will also be more of an open-ended fund so that its assets will actually fluctuate more in-line with the underlying securities as opposed to swinging at wider premiums or discounts to the net asset values that closed-end funds and some ETF’s encounter.

EPI will select from a broad universe of approximately 150 profitable companies included in the WisdomTree India Earnings Index on the annual index screening date. EPI will be listed on the NYSE Arca.  You can access the full release here.

The current major ETF that traders use is the iPath MSCI India Index ETN (NYSE: INP) or traders go to the closed end fund called the India Fund, Inc. (NYSE: IFN) or the Morgan Stanley India Investment Fund, Inc. (NYSE: IIF). 

This may offer investors a chance to invest in a broader basket of Indian shares without the added volatility that can be caused from the premium and discount to net asset values.  Now we just have to wait about 5 or 6 weeks to see how well it works and how active the trading is.

Jon C. Ogg
January 24, 2008

Posted on: January 24, 2008 – 1:55 pm in ADR, ETF, , , , , , , ,

Reliance Power, India’s Largest IPO Gobbled Up

Indian billionaire Anil Ambani’s Reliance Power raised roughly $3 billion in the country’s largest initial public offering.  The IPO was fully subscribed today as investors continue to commit capital in this key component of the international BRIC investments in emerging markets.  Most bids came in four to ten times oversubscribed, although this exact number is different from source to source.

Reliance Power currently has a portfolio of 13 medium and large-sized power projects under development and strategically located in various locations in India, according to the company itself.

It appears that the over-direct of necessary funds to bid ended up taking its toll on the entire market as the Sensex closed down about 476 points to 20,251 in a near 2% drop.

Jon C. Ogg
January 15, 2008

Posted on: January 15, 2008 – 7:22 am in IPOs, , ,