Vaneck Digital India ETF Investing in India's Digital Future

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The Vaneck Digital India ETF is an exciting investment opportunity that allows you to tap into India's rapidly growing digital economy. This ETF focuses on companies that are leading the charge in digital transformation, such as fintech, e-commerce, and digital payments.

India's digital economy is expected to grow to $1 trillion by 2025, making it an attractive market for investors. The country's large and young population, along with its growing middle class, is driving demand for digital services and products.

The Vaneck Digital India ETF provides exposure to a diversified portfolio of Indian digital companies, including Paytm, Zomato, and Policybazaar. These companies are at the forefront of India's digital revolution, and their growth potential is substantial.

By investing in the Vaneck Digital India ETF, you can gain access to this growing market and potentially benefit from the long-term growth of India's digital economy.

Description

The VanEck Digital India ETF (DGIN) is designed to track the performance of the MVIS Digital India Index (MVDINDTR), which focuses on companies that support the digitization of the Indian economy.

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Companies in the following categories are included in the index: software, hardware, information technology services and consulting, communications equipment and infrastructure, telecommunication services, internet applications, e-commerce sites including online financial services, and electronic payment processing.

The index provider may add additional categories as the field of digitization evolves, ensuring the fund stays up-to-date with the latest developments in the industry.

The fund's goal is to provide investors with exposure to the growth potential of the Indian digital economy by tracking the performance of the MVIS Digital India Index.

Fund Details

The VanEck Digital India ETF is a fund that's been around since February 15, 2022. It's a part of the VANECKFUND family.

Here are some key details about the fund:

  • Legal Name: VanEck Digital India ETF
  • Fund Family Name: VANECKFUND
  • Inception Date: February 15, 2022
  • Currency: USD
  • Domiciled Country: US
  • Manager: Peter Liao

The fund is denominated in USD, which means its value is tied to the US dollar.

Provider Identity

VanEck Digital India ETF is offered by VanEck, a leading player in the field of passive investments.

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VanEck has a reputation for providing reliable and efficient investment solutions, which is a key factor in their success.

Their extensive experience in the field of passive investments is a testament to their expertise and commitment to their clients.

VanEck's focus on passive investments allows them to offer a range of ETFs that track various market indices, providing investors with a diversified portfolio.

Their ETFs are designed to be low-cost and transparent, making them an attractive option for investors looking for a hassle-free investment experience.

What Index Is Replicated

The VanEck Digital India ETF is a unique investment option that tracks a specific index. This index is the MVIS Digital India.

One of the key things to know about the VanEck Digital India ETF is that it replicates the performance of the MVIS Digital India. This means that the ETF's returns are directly tied to the performance of the underlying index.

Investors in the VanEck Digital India ETF can expect the fund to mirror the MVIS Digital India's movements, making it a great option for those looking to invest in the Indian digital sector.

Investment Information

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The VanEck Digital India ETF has a net expense ratio of 0.75%, which is relatively low compared to other ETFs.

The ETF tracks the MVIS Digital India Index, which focuses on firms generating at least 50% of revenue from sectors like software, IT services, and e-commerce.

Currently, 622 million Indians are active internet users, and this number is projected to rise to 900 million by 2025, making India's digital economy a promising investment opportunity.

Ticker

When investing in the VanEck Digital India ETF, it's essential to know the ticker. The VanEck Digital India ETF ticker is DGIN.

You can find the ticker on various stock exchanges. The ticker for the VanEck Digital India ETF is DGIN on the AMEX.

If you're looking to invest in the VanEck Digital India ETF, you can find the ticker on the AMEX as DGIN.

Access Next Wave of Growth

India is rapidly shifting towards a digital economy, with a large, tech-savvy population and favorable government policies driving the growth.

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622 million Indians are active internet users, projected to rise to 900 million by 2025.

The Digital India ETF (DGIN) aims to capitalize on this growth by targeting exposure to leading companies driving India's digitization.

The ETF tracks the MVIS Digital India Index, focusing on firms generating at least 50% of revenue from sectors like software, IT services, and e-commerce.

DGIN features a net expense ratio of 0.75% and is listed on the NYSE Arca.

Performance and Risks

The VanEck Digital India ETF has a relatively low expense ratio of 0.75%, making it a cost-effective option for investors.

This low expense ratio is due in part to the fund's use of a broad-based index, which tracks the performance of the MSCI India Digital Thematic Index.

The fund's performance is also influenced by the overall performance of the Indian digital economy, which is expected to grow at a rate of 15% per annum.

This growth is driven by the increasing adoption of digital technologies across various industries in India, including e-commerce, fintech, and healthcare.

P/E Ratio Definition

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The P/E ratio is a key metric used to evaluate the performance of an investment. It's calculated by dividing the current stock price by the earnings per share.

For example, the VanEck Digital India ETF has a P/E ratio of 41.22, which indicates its price is 41.22 times its earnings per share.

P/B Ratio

The Price-to-Book (P/B) Ratio is a simple yet powerful tool for evaluating a company's stock. It's calculated by dividing the stock price by the book value per share.

A low P/B Ratio, typically below 1, indicates that the stock is undervalued compared to its assets. This can be a good opportunity to buy.

For example, a company with a P/B Ratio of 0.5 might be a good candidate for investment, as its stock price is significantly lower than its book value. This could be due to various factors such as poor management, industry downturn, or market volatility.

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High P/B Ratios, on the other hand, suggest that the stock is overvalued, which can lead to increased risk. A P/B Ratio above 3, for instance, may indicate that investors are overpaying for the company's assets.

In the case of XYZ Inc., a P/B Ratio of 2.5 was observed, which is relatively high compared to its industry peers. This could be a warning sign for investors, indicating potential overvaluation.

Keep in mind that the P/B Ratio is just one of many metrics to consider when evaluating a company's stock. It's essential to combine it with other factors, such as earnings growth, debt levels, and industry trends, to get a comprehensive picture.

What Are the Risks?

Investing in the stock market can be a thrilling experience, but it's essential to understand the potential risks involved. Market fluctuations can significantly impact your investments, causing them to rise and fall in value.

Currency risks are another significant concern, especially when investing in international markets. Smaller companies are also more vulnerable to market changes, making them a higher-risk investment.

It's not uncommon for investors to underestimate these risks, but being aware of them can help you make more informed decisions.

Transparency and Fees

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The VanEck Digital India ETF has some key facts to consider when it comes to transparency and fees. The ETF is obligated to report regularly and transparently on its investments.

The ETF's operational fees are broken down into several categories, including the expense ratio, management fee, 12b-1 fee, and administrative fee. The expense ratio is 0.76% of the fund's assets under management (AUM).

Here's a breakdown of the ETF's operational fees:

The management fee is 0.70% of the fund's AUM, which is lower than the category average.

Operating Fees

Operating fees can add up quickly, so it's essential to understand what you're paying for. The DGIN fees are 0.76% of the Assets Under Management (AUM).

The expense ratio is the largest component of the DGIN fees, making up 0.76% of the AUM. This is a significant cost, especially for investors with smaller portfolios.

Here's a breakdown of the DGIN fees:

These fees can impact your investment returns, so it's crucial to understand what you're paying for. The management fee is the second-largest component of the DGIN fees, making up 0.70% of the AUM.

Is the Transparent?

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The ETF's transparency is a crucial aspect to consider. The ETF is obligated to report regularly and transparently on its investments. This means investors can stay informed about where their money is going and make more informed decisions. Transparency is key to building trust with investors. The ETF's reporting requirements ensure that its investments are always disclosed.

Fund Classification and Holdings

The Vaneck Digital India ETF has a diverse portfolio of top holdings, which is a great indicator of its investment strategy.

According to the top 10 holdings, Reliance Industries Ltd holds the largest position at 8.03%. This is a significant stake in the Indian economy, given Reliance's vast presence in various sectors.

The fund's top holdings also include several prominent Indian IT companies, such as Infosys Ltd, Tata Consultancy Services Ltd, and HCL Technologies Ltd, which together hold a substantial 22.41% of the fund's portfolio.

Here are the top 10 holdings of the Vaneck Digital India ETF:

  1. Reliance Industries Ltd8.03%
  2. Infosys Ltd7.74%
  3. Bharti Airtel Ltd7.02%
  4. Tata Consultancy Services Ltd6.65%
  5. Zomato Ltd6.01%
  6. HCL Technologies Ltd5.54%
  7. Jio Financial Services Ltd5.07%
  8. Tech Mahindra Ltd4.42%
  9. Wipro Ltd4.26%
  10. Info Edge India Ltd3.32%

List of Holdings

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Let's take a look at the list of holdings for a particular fund. The top 10 holdings make up a significant portion of the fund's overall value.

Reliance Industries Ltd is the largest holding at 8.03%, followed closely by Infosys Ltd at 7.74%. These two companies make up a substantial chunk of the fund's portfolio.

Bharti Airtel Ltd and Tata Consultancy Services Ltd are also among the top 10 holdings, with 7.02% and 6.65% respectively. These companies are major players in their respective industries.

Here's a breakdown of the top 10 holdings:

  1. Reliance Industries Ltd - 8.03%
  2. Infosys Ltd - 7.74%
  3. Bharti Airtel Ltd - 7.02%
  4. Tata Consultancy Services Ltd - 6.65%
  5. Zomato Ltd - 6.01%
  6. HCL Technologies Ltd - 5.54%
  7. Jio Financial Services Ltd - 5.07%
  8. Tech Mahindra Ltd - 4.42%
  9. Wipro Ltd - 4.26%
  10. Info Edge India Ltd - 3.32%

Fund Classification

Fund classification is a crucial aspect of understanding how your investments are managed. There are primarily two types of funds: actively managed and passively managed.

Actively managed funds are designed to outperform the market by a fund manager who actively selects securities to buy and sell. In contrast, passively managed funds track a specific market index, such as the S&P 500.

Index funds, a type of passively managed fund, aim to replicate the performance of a particular market index. This is achieved by holding all the securities in the same proportion as the index.

Concentration Analysis

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Concentration Analysis is a key aspect of understanding a fund's investment strategy. It helps us gauge how focused or diversified the fund's holdings are.

A fund with high net assets, like DGIN, tends to have a more concentrated portfolio, with a larger percentage of its assets invested in its top holdings. In DGIN's case, 58.05% of its net assets are invested in its top 10 holdings.

The number of holdings in a fund can also give us clues about its concentration. DGIN has 44 holdings, which is relatively few compared to some other funds. This suggests that DGIN is more focused on a smaller group of investments.

Here's a breakdown of DGIN's concentration compared to its Category Low and Category High peers:

As we can see, DGIN's concentration is quite high, with a significant portion of its net assets invested in its top 10 holdings. This is consistent with its high DGIN % Rank of 96.30% in the Net Assets and Net Assets in Top 10 categories.

Launch and Domicile

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The VanEck Digital India ETF offers a convenient way to gain exposure to the Indian digital economy, with a low minimum investment requirement of just 1 share.

Its primary listing is on the BSE, and it is also available for trading on the NSE.

The fund's domicile is in Ireland, which is a common location for international ETFs due to favorable tax treatment.

When Was Launched?

The VanEck Digital India ETF was launched on February 15, 2022.

Where Is Domiciled?

In the world of finance, understanding where an investment is domiciled is crucial. VanEck Digital India ETF is domiciled in the US.

The location of domicile can affect tax implications, regulatory requirements, and even investor protection. This is especially true for investors in the US, who need to consider the tax implications of their investments.

VanEck Digital India ETF is a great example of an investment that is domiciled in a specific country, in this case, the US.

Currency and Dividends

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The VanEck Digital India ETF offers a unique investment opportunity in the rapidly growing Indian digital economy.

The fund's currency is the US dollar, which is the base currency for all transactions.

As the fund invests in digital companies in India, it's essential to understand the dividend policy. The fund distributes dividends quarterly, providing investors with regular income.

Currency Listing

The currency listing of an ETF can be a crucial factor in investment decisions. The VanEck Digital India ETF is listed in USD.

Having a clear understanding of the currency listing can help investors make informed decisions about their investments.

This is evident in the case of the VanEck Digital India ETF, which does not comply with the EU UCITS investor protection directives.

Dividend Yield Analysis

Dividend Yield Analysis is a crucial aspect of investing in currencies that pay dividends.

The Dividend Yield of DGIN is 0.22%.

This is significantly lower than the Category High of 6.08%.

In fact, it's even lower than the Category Low of 0.00%.

This suggests that DGIN is a relatively conservative investment option.

Here's a comparison of DGIN's Dividend Yield with the Category Low and High:

DGIN's Dividend Yield ranks 33.33% in the DGIN % Rank category.

Chart: USD

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The USD is a widely traded currency, with the US dollar being the most widely held reserve currency globally.

The US dollar's value can fluctuate based on economic indicators, such as inflation rates and interest rates.

The Federal Reserve, the central bank of the US, sets monetary policy to control inflation and stabilize the currency.

In the US, the dollar is divided into 100 cents, and it's used as a unit of account in international trade and finance.

The dollar's exchange rate with other currencies can affect the value of investments and imports/exports.

A strong dollar can make imports cheaper, but it can also make exports more expensive.

The dollar's value can be influenced by global events, such as economic downturns or natural disasters.

The US dollar is also used as a reference point for other currencies, such as the euro and the yen.

A weak dollar can make imports more expensive, but it can also make exports cheaper.

Technical Information

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The VanEck Digital India ETF is a unique investment option that focuses on the rapidly growing Indian digital economy.

It has a total expense ratio of 0.75% making it a relatively affordable investment option.

The fund tracks the MVIS India Digital and Payment Thematic Index, which is designed to provide exposure to companies that are involved in the digital transformation of India.

The fund's portfolio is diversified across various sectors such as technology, e-commerce, and digital payments.

Average Trading Volume

The average trading volume of a fund can give you an idea of its liquidity and popularity. The current average trading volume of VanEck Digital India ETF is 7,463.64.

This means that the fund is relatively liquid and can be easily bought or sold. The VanEck Digital India ETF's average trading volume is a key factor to consider when deciding whether to invest in it.

ISIN

An ISIN, or International Securities Identification Number, is a unique code assigned to a security.

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It's typically 12 characters long and can be found on financial statements, stock exchanges, and other financial documents.

ISINs are used to identify and distinguish between different securities, such as bonds and stocks.

They're particularly useful when trading securities across borders, as they provide a standardized way to identify and verify the security.

ISINs are not the same as CUSIPs, although they serve a similar purpose.

In the United States, ISINs are often used in conjunction with CUSIPs, which are a unique identifier for securities listed on US exchanges.

TER

TER is short for Terminal Emulator, a software that allows users to interact with the command line interface of an operating system. It's like a window into the operating system's brain.

Most TERs are free and open-source, which means anyone can download and use them without paying a dime. They're also highly customizable, allowing users to tailor the interface to their liking.

TERs often come with a range of features, including syntax highlighting, which makes code easier to read, and auto-completion, which helps users quickly find and enter commands. Some TERs also include a built-in file manager and text editor.

TERs are a crucial tool for developers, sysadmins, and anyone who needs to work with the command line. They can be used to install software, manage files, and troubleshoot issues with the operating system.

NAV

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NAV is a crucial aspect of technical information, and it's essential to understand how it works. The Navigation Bar, or NAV, is typically located at the top of a webpage or interface.

The most common type of NAV is the horizontal menu bar, which can contain links to various sections of the website or application. The Navigation Bar can also be vertical, often seen in mobile apps or websites with limited screen real estate.

In some cases, the NAV can be hidden or collapsible, only appearing when the user clicks on a specific button or icon. This design choice is often used to declutter the interface and reduce visual noise.

The Navigation Bar can be customized to fit the specific needs of the user or organization, with some systems allowing users to create their own custom links or menus.

Frequently Asked Questions

What is the best Indian ETF?

There isn't a single "best" Indian ETF, as the best option depends on your investment goals and risk tolerance. Consider popular options like SBI ETF Nifty 50 or ICICI Prudential Nifty ETF for exposure to India's top companies.

Angie Ernser

Senior Writer

Angie Ernser is a seasoned writer with a deep interest in financial markets. Her expertise lies in municipal bond investments, where she provides clear and insightful analysis to help readers understand the complexities of municipal bond markets. Ernser's articles are known for their clarity and practical advice, making them a valuable resource for both novice and experienced investors.

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