WisdomTree Investments Inc. has said it plans to start an earnings-weighted India exchange-traded fund near the end of February.
The fund, which was announced Wednesday, is the first exchange-traded portfolio to offer pure exposure to local Indian securities. It has received the necessary regulatory approval from the Securities and Exchange Commission.
In addition to offering investors exposure to a market that is traditionally difficult of access, the fund is to do so through a fundamentally weighted indexing strategy that seeks to reduce the potential risks that WisdomTree believes are associated with investing in emerging markets through market capitalization-weighted indexes.
The fund is to select from about 150 profitable companies included in the WisdomTree India Earnings Index.
WisdomTree Investments, which is based in New York, has a family of fundamentally weighted indexes and exchange-traded funds. Its indexes cover all major market capitalizations, both domestically and internationally.
