HDFC AMC starts trading passive ETF tracking FTSE India Equity Index on NSE

what happened

HDFC Asset Management Company (HDFC AMC) debuted its HDFC FTSE India Equity ETF on Friday, trading it through India's National Stock Exchange (NSE), according to TradingView. The open-ended fund follows the FTSE India Equity Index (Total Return Index), which covers roughly 90% of the FTSE India All Cap Index by market value. The product gives investors broad access to Indian shares through a passive, rules-based strategy.

The launch ceremony featured HDFC AMC chief Navneet Munot, FTSE Russell's Asia head Nico Boulay and NSE chief Ashishkumar Chauhan, who each gave keynote remarks. Munot said India's capital markets had changed considerably over the past decade, helped by formalisation of the economy, deeper market liquidity and wider participation across sectors. He added that investors increasingly want diversified and transparent access to the country's equities.

why it matters

SEBI rates the scheme "Very High Risk" on its riskometer. The listing widens HDFC AMC's range of passive products and offers investors another route into the Indian equity market, with results depending on tracking error relative to the index.

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