According to the NSE, the newly launched ETFs would provide investors with more strategic options to hedge risk and enrich their investment portfolio.
The three indices were created by India Index Services and Products (IISL), a NSE group company, that provides a variety of indices and index related services for the capital markets.
The three ETFs — the Fubon Nifty ETF, Fubon Nifty 2X Leveraged Index ETF and Fubon Nifty-1 Inverse Index ETF — were issued by Fubon Asset Management and track the Nifty 50 Index, Nifty PR 2X Leverage Index and Nifty PR 1X Inverse Index respectively.
Nifty 50 is the benchmark index of India. It is a well diversified 50 stock index representing 13 sectors of the economy covering 65 percent of free float market capitalisation of the stocks listed on NSE.
“Currently India is one of the fastest growing economies in the world and the listing of Nifty 50 based ETFs in Taiwan will ensure that investors in Taiwan can participate in the India growth story,” said Mukesh Agarwal, chief executive, IISL.
“Nifty 50 is the most widely used ETF benchmark in Indian domestic market with 13 ETFs tracking the index. In terms of contracts traded, Nifty 50 options traded on NSE is ranked number one globally and Nifty 50 futures is ranked seventh globally.”
The new products will provide Taiwan based investors with a more cost-efficient way to access the Indian market, as well as further popularise Taiwan’s ETF market globally.