First Trust India Nifty 50 Equal Weight ETF

NFTY

Market cap $160M

First Trust India NIFTY 50 Equal Weight ETF offers exposure to Indian equities via an equal-weight strategy, but faces significant currency headwinds for USD investors. The equal-weight index tracked by NFTY has delivered ~1.8% annualized alpha over the market-cap index tracked by INDY over two decades — implying a comparative edge for NFTY over INDY. NFTY's 5-year CAGR was 9.21%, materially trailing its equal-weight local benchmark's 19%, due to INR depreciation — underscoring structural weakness.

Rupee's record slide to 92 per USD puts ETFs like EPI in focus as investors weigh currency risk against India's upgraded growth outlook.

Despite tariff worries and equity outflows, India's growth story makes its ETFs a compelling play.

India's economy grew at an annual rate of 7.8% in the quarter ending June, topping economists' expectations of 6.7% (Reuters poll), as quoted on CNBC.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

A smart beta exchange traded fund, the First Trust India NIFTY 50 Equal Weight ETF (NFTY) debuted on 02/14/2012, and offers broad exposure to the Asia-Pacific (Emerging) ETFs category of the market.

Launched on 02/14/2012, the First Trust India NIFTY 50 Equal Weight ETF (NFTY) is a smart beta exchange traded fund offering broad exposure to the Asia-Pacific (Emerging) ETFs category of the market.

India's stocks have erased most of this year's losses, thanks to early signs of increased government spending and monetary easing.

Indian equities remain mired in one of their worst selloffs in years. But sentiment is nearing rock bottom and fundamentals are turning. Equal-weighted NFTY offers a uniquely poised risk/reward play on a recovery.

Designed to provide broad exposure to the Asia-Pacific (Emerging) ETFs category of the market, the First Trust India NIFTY 50 Equal Weight ETF (NFTY) is a smart beta exchange traded fund launched on 02/14/2012.