By Patrick Watson
If you like India, and you like infrastructure, Emerging Global Shares now has an ETF just for you. The Emerging Global Shares Indxx India Infrastructure ETF (INXX) is open for business. This is the firm’s third offering directed toward emerging markets infrastructure stocks; similar ETFs covering China (CHXX) and Brazil (BRXX) were launched in February of this year.
The name and ticker symbol are potentially confusing in this case, so let’s begin by clarifying. Indxx is the name of a company that provides, among other things, an index of infrastructure-related companies based in India. INXX is the ticker of the new ETF that tracks this index.
As of the most recent quarter-end, the largest industry weighting in the index was Electricity at 23%, followed by Construction & Materials with 19% and Industrial Metals & Mining at 13%. The index includes a total of 30 stocks, most of which are probably unfamiliar names to many U.S. investors.
- GAIL India 6.73%
- Larson & Toubro 5.53%
- Jindal Steel & Power 5.51%
- Bharat Heavy Electricals 5.47%
- Tata Power Company 5.13%
The index holdings have an average market capitalization of about $12 billion and a price/earnings ratio around 20. Emerging Global Shares has agreed to partially waive its fees until January 26, 2011. Excluding the waiver, INXX has an estimated gross expense ratio of 1.58%, and 0.85% after the waiver.
For more information, you can visit the INXX page at the Emerging Global Shares web site.
Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.