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Lunate’s India ETF is live on the ADX: A unit of Abu Dhabi-based Lunate Capital launched on Saturday the GCC region’s first exchange-traded fund (ETF) for Indian stocks, according to an ADX disclosure (pdf). The Chimera S&P India Shariah ETF tracks the performance of Shariah-compliant Indian stocks.
Underlying constituents include big Indian names Reliance Industries, Infosys, and Tata Consultancy. Chimera’s latest ETF replicates the S&P India Shariah Liquid 35/20 Capped Index, which tracks the “30 largest and most liquid Shariah-compliant Indian companies listed on the Bombay Stock Exchange.”
The ETF dipped 0.58% on its first day of trading to AED 3.263. By definition, an ETF looks to replicate the movement of the index or other basket of stocks it tracks.
ADVISORS- Authorized participants include International Securities, Arqaam Securities, EFG Hermes UAE, BHM Capital, Al Daman Securities, and FAB Securities, according to the ADX. BNY Mellon is the global custodian of the ETF, while our friends at HSBC Bank Middle East are the sub custodian. S&P Dow Jones Indices is the index provider.
This isn’t Lunate Capital’s first Asian ETF: Chimera launched its S&P China HK Shariah ETF, a Shariah-compliant ETF tracking Hong Kong-listed Chinese equities, in May 2023. The ETF went live on the ADX on 5 June.
Background: The Lunate announced the launch of the fund earlier this month on the back of S&P India Shariah Liquid 35/20 Capped Index ’s strong performance, which saw S&P’s AED-denominated index for Indian stocks climb 16% last year, according to Bloomberg.
