BlackRock Plans to Launch Active India ETF to Compete with JP Morgan

BlackRock, the world's largest asset manager, is set to expand its range of active ETFs in Europe by launching an India equity strategy. This move aims to compete with JP Morgan's existing active India ETF. 

BlackRock's Strategic Move into India's Equity Market 

BlackRock has filed with Irish regulators for approval of the iShares India Equity Enhanced Active UCITS ETF.  

This new offering will join BlackRock's existing $5.2 billion iShares MSCI India UCITS ETF, which currently holds the position of Europe's largest ETF capturing India's equity market.  

The existing ETF carries a total expense ratio (TER) of 0.65%, significantly higher than its closest competitor. 

The new active ETF will directly rival JP Morgan's $25 million India Research Enhanced Index Equity Active UCITS ETF. JP Morgan's product was the first active India ETF in Europe, launched last year. 

Competition in Europe's Active ETF Space 

BlackRock's entry into the active India ETF market signifies the growing competition between the two New York-based asset managers.  

Last year, JP Morgan maintained its lead in Europe's active ETF space by adding $5.7 billion in net new assets to its active UCITS ETF suite. 

BlackRock was not far behind, adding $5.3 billion as it expanded its product offerings and distribution efforts. 

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Active ETFs' Role in BlackRock's Business 

Active ETFs have become increasingly important for BlackRock's iShares brand. In Q1, active ETFs accounted for approximately 14% of iShares' global flows, with $19 billion in new assets out of a total of $132 billion in ETF inflows. 

Conclusion 

BlackRock's decision to launch an active India ETF highlights the competitive dynamics in Europe's active ETF market. With both BlackRock and JP Morgan vying for market share, investors can expect more innovative products in the future. 

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