UBS Launches 2 New India-Focused ETFs to Expand Global Investor Access

UBS Asset Management has introduced 2 new exchange-traded funds (ETFs) that provide global investors easier access to the Indian equity market. Announced on November 19, the launch strengthens UBS’s passive product lineup with options tailored for both general and ESG-conscious investors.

UBS MSCI India SF UCITS ETF: Broad Exposure to Indian Equities

The UBS MSCI India SF UCITS ETF offers wide exposure to large and mid-cap Indian companies.

• Benchmark: MSCI India Index
• Constituents: 160 large and mid-cap stocks
• Market coverage: ~85% of India’s listed equity universe
• Replication: Swap-based (synthetic) ETF
• Tax advantage: Synthetic ETFs are not currently subject to Indian capital gains tax

This product is designed for investors seeking efficient, diversified access to India’s equity market with potential tax benefits.

UBS MSCI India Universal UCITS ETF: ESG-Focused Access

UBS has also launched an ESG-oriented India ETF designed for sustainability-focused investors, tracking the MSCI India Universal Low Carbon Select 5% Issuer Capped Index through physical replication. The fund increases exposure to companies with strong or improving ESG profiles while excluding those that fail to meet ESG or climate-related criteria.

It is classified under Article 8 of the SFDR. This ETF becomes the latest addition to UBS’s ESG Universal ETF family, which already includes products covering ACWI, Australia, Canada, China, EMU, Japan and the USA.

Why is UBS Focusing on India?

UBS highlighted several macro and market factors supporting increased investor interest in India:

• India is projected to become the world’s 3rd-largest economy by 2027
• It is already the 4th-largest, with a GDP above USD 4 trillion
• The country has a large working-age population and 6–8% annual growth
• India’s equity market is the 5th-largest globally, with a total market cap of over USD 4 trillion
• Over 170 Indian stocks have market caps exceeding USD 5 billion, ensuring strong liquidity

These indicators reflect India’s rising prominence as a high-growth global market.

Rising Global Demand for India ETFs

Amanda Rebello, Head of ETF & Index Fund Client Coverage at UBS Asset Management, said, “There’s been a surge of interest in Indian equities lately – UCITS assets in this market have more than doubled in the past 2 years and are currently above the USD 10bn milestone. So we’re delighted we can offer our clients a choice of 2 ETFs in this space: the synthetic UBS MSCI India SF, with its tax benefits; and the ESG-focused UBS MSCI India Universal.”

Read More: Gold and Silver ETFs Rally.

Conclusion

UBS’s launch of 2 India-focused ETFs highlights the growing appetite for Indian equities among global investors. With options offering either broad market exposure or ESG-focused access, the new ETFs aim to meet diverse investment objectives.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.