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VanEck’s latest ETF aims to capture the potential upside of more Indian citizens gaining access to digital services in the country.
The VanEck Digital India ETF (DGIN) launched on the NYSE Arca Thursday, charging an expense ratio of 0.75%.
DGIN follows an index produced by VanEck’s indexing arm MVIS, which in turn follows Indian firms generating at least half their revenues from producing software, hardware or infrastructure for telecoms and communications services. E-commerce, financial technology and payment processing companies are also eligible for selection.
The index has 35 constituents as of publication, and rebalances quarterly.
In an investment case deck, VanEck argues that digitalization in India will become more ubiquitous in the future due to its relatively young population that will grow up with connected devices. The World Economic Forum estimates the median age in India will be 31 in 2030, compared with 40 years in the U.S. and 42 years in China.
DGIN will share conglomerate Reliance Industries, which owns Jio Mobile, as its top holding with the iShares MSCI India ETF (INDA) and the iShares India 50 ETF (INDY), the two largest U.S.-listed ETFs tracking companies by market cap. Approximately 28% of DGIN’s top 10 holdings overlap with INDY and INDA.