Amundi has announced the launch of an Indian sovereign bond ETF joining the tussle for Indian government bond ETF assets in Europe, ETF Stream can reveal.
The Amundi JP Morgan INR India Government Bond UCITS ETF (INGU) debuts with total expense ratio (TER) of 0.30%.
INGU becomes the most competitively priced ETF tracking the JP Morgan India Government Fully Accessible Route (FAR) Bonds index, undercutting the L&G India INR Government Bond UCITS ETF (TIGR) which has a TER of 0.39%.
The index tracked by the ETF holds FAR-eligible government issues denominated in rupees with at least $1bn in market cap. Eligible bonds with at least 2.5 years of remaining maturity on rebalance date will be included in the index, and those with less than six months remaining maturity on rebalance date will be excluded.
Since the Reserve Bank of India (RBI) established the Fully Accessible Route (FAR) scheme in March 2020, allowing foreign investors to access Indian government bonds without restrictions for the first time, a handful of ETFs have launched in the space.
India’s growth story has produced a structural tailwind for its fixed income market and government bonds have enjoyed growing demand and greater liquidity following their recent inclusion into the JP Morgan GBI-EM Global Services indices.
Benoit Sorel (pictured), head of ETF, indexing and smart beta at Amundi, commented: “India's economic momentum and the recent inclusion of its government bonds in key global indices present a unique opportunity for international investors.”
“We are pleased to enable our clients to access an enhanced portfolio diversification tool at competitive pricing.”
Last week, Amundi introduced Europe’s joint cheapest US equity ETF in a double launch.
