Key Takeaways
- • HANetf and EMQQ Global jointly launched the INQQ India Internet & Ecommerce ESG-S UCITS ETF, providing targeted exposure to Indian digital economy companies with minimum 50% revenue from internet and ecommerce sectors.
- • India's economy is projected to grow 6% in 2023, positioning it as the world's fastest-growing major economy, with the BSE SENSEX delivering 93% returns over five years versus 58% for the S&P 500.
- • The ETF capitalizes on India's digital infrastructure expansion, with 98% population access to 4G networks and seven million new smartphone users entering the market monthly, alongside an influx of 400 million new middle-class consumers over the past 15 years.
- • The fund tracks the India Internet & Ecommerce ESG Screened Index, ensuring 100% portfolio exposure to qualifying Indian companies while incorporating environmental, social, and governance screening criteria.
- • India is increasingly viewed as a "China plus one" diversification strategy for global investors seeking exposure to emerging market digital consumption growth outside traditional China-focused investments.
Summary
HANetf, a European ETF white labeler, has partnered with EMQQ Global to launch the INQQ India Internet & Ecommerce ESG-S UCITS ETF, marking a significant institutional investment vehicle for capturing India's digital economy expansion. The fund tracks the India Internet & Ecommerce ESG Screened Index, providing 100% exposure to Indian companies generating a minimum of 50% revenue from internet and ecommerce operations while meeting ESG screening standards.
The launch reflects accelerating investor interest in India as a primary growth market. The International Monetary Fund projects India's economy will expand 6% in 2023 and 2024, establishing it as the world's fastest-growing major economy. This economic trajectory has translated into substantial equity market performance: the BSE SENSEX has recorded 93% returns over the past five years, materially outpacing the S&P 500's 58% return. According to HANetf Co-Founder and Co-CEO Hector McNeil, "India's prominence in the global economy has become impossible to overlook. Optimism surrounding its economy is on the rise, with many eyeing India as a destination for 'China plus one' diversification strategies."
Structural tailwinds supporting India's internet and ecommerce sectors remain robust. The country's digital infrastructure has enabled approximately 98% of the population to access 4G connectivity, driving seven million new smartphone users into the market monthly. Simultaneously, India's expanding middle class—which grew by 400 million members over the past 15 years—is generating substantial consumption growth. These demographic and infrastructure dynamics position India's internet economy on a trajectory to potentially outgrow nominal GDP expansion, underscoring the strategic rationale for targeted digital sector exposure.
HANetf and EMQQ Global have previously collaborated on the EMQQ Emerging Markets Internet & Ecommerce UCITS ETF, which targets online consumption growth across developing markets. The new India-focused vehicle represents a geographic deepening of this partnership, allowing institutional investors to isolate India's digital consumption thesis with ESG-aligned construction.
The launch reflects accelerating investor interest in India as a primary growth market. The International Monetary Fund projects India's economy will expand 6% in 2023 and 2024, establishing it as the world's fastest-growing major economy. This economic trajectory has translated into substantial equity market performance: the BSE SENSEX has recorded 93% returns over the past five years, materially outpacing the S&P 500's 58% return. According to HANetf Co-Founder and Co-CEO Hector McNeil, "India's prominence in the global economy has become impossible to overlook. Optimism surrounding its economy is on the rise, with many eyeing India as a destination for 'China plus one' diversification strategies."
Structural tailwinds supporting India's internet and ecommerce sectors remain robust. The country's digital infrastructure has enabled approximately 98% of the population to access 4G connectivity, driving seven million new smartphone users into the market monthly. Simultaneously, India's expanding middle class—which grew by 400 million members over the past 15 years—is generating substantial consumption growth. These demographic and infrastructure dynamics position India's internet economy on a trajectory to potentially outgrow nominal GDP expansion, underscoring the strategic rationale for targeted digital sector exposure.
HANetf and EMQQ Global have previously collaborated on the EMQQ Emerging Markets Internet & Ecommerce UCITS ETF, which targets online consumption growth across developing markets. The new India-focused vehicle represents a geographic deepening of this partnership, allowing institutional investors to isolate India's digital consumption thesis with ESG-aligned construction.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.