Samsung Asset Management Lists Two KODEX India Nifty50/Leverage ETFs

Investing in Top Indian Market Stocks as 'Post-China'
Index-Type Suitable for 'Long-Term Installment', Leverage-Type for 'Active Investors'

Samsung Asset Management announced that it will list two ETFs investing in the Indian market, ‘KODEX India Nifty50’ and ‘KODEX India Nifty50 Leverage,’ on the 21st.

These ETFs invest in blue-chip stocks in the Indian market. The underlying index tracks India’s representative stock index, the ‘Nifty 50 Index,’ which consists of 50 blue-chip stocks listed on the National Stock Exchange of India (NSE). Currently, the financial sector accounts for the majority of the index, but with future policy-driven infrastructure development and manufacturing base strengthening, the sector weights are expected to diversify across finance, infrastructure, consumer, and manufacturing/technology stocks.

KODEX India Nifty50 is distinguished by having the most LP contracts among Indian equity ETFs, enabling the most stable bid-ask liquidity provision. The total expense ratio of KODEX India Nifty50 is 0.19% per annum, while KODEX India Nifty50 Leverage, which tracks twice the index return, has a total expense ratio of 0.39% per annum.

Despite the global stock market downturn in 2022, the India Nifty50 index rose by 4.65%, significantly outperforming the US S&P 500 (-18.4%) and the KOSPI index (-24.6%), drawing attention as an investment destination with high growth potential.

In particular, India is expected to surpass China as the country with the largest population in the world starting in 2023, possessing a high ratio of working-age population and a massive consumer market. With various government-level policy supports accelerating digital transformation, India is emerging rapidly as a post-China market, gaining attention as a new economic cooperation partner for the US to replace China, which is another reason for the optimistic outlook on the Indian market’s growth.

Im Taehyuk, Head of ETF Management at Samsung Asset Management, said, “We have listed two products, an index-type product that directly manages physical stocks and a leverage product, to provide a convenient solution for investing in India, a rapidly emerging growth country as the world’s largest consumer market and global supply chain. The index-type product will be a good investment target for pension investors who want to invest long-term in growth countries through installment savings, while the leverage type will be suitable for active investors seeking additional returns by utilizing the volatility of the Indian stock market.”

This content was produced with the assistance of AI translation services.