Lunate Capital LLC is all set to launch the Chimera S&P India Shariah exchange-traded fund (ETF), the first ETF tracking Indian equities to be launched in the region. Abu Dhabi Securities Exchange (ADX) welcomed the listing. Managed by Lunate Capital LLC – Abu Dhabi-based investment management firm – the ETF replicates the S&P India Shariah Liquid 35/20 Capped Index, tracking the 30 largest and most liquid Shariah-compliant Indian companies listed on the Bombay Stock Exchange. The S&P India Shariah Liquid 35/20 Capped Index rose 16 per cent last year, although it couldn’t keep pace with the Nifty50 Index 20 per cent gain. The new ETF is expected to include large-cap Indian stocks such as Reliance Industries, Infosys, and TCS.

ADX has established itself as the most liquid ETF marketplace in the MENA region, with ETF trading values exceeding Dh5 billion in 2023, a 160 per cent increase from the previous year, and total ETF trading volumes reaching 1 billion units (representing 205 per cent Year-over-Year growth).

The addition of the Chimera S&P India Shariah ETF strengthens ADX’s position by offering investors in the UAE direct access to the Indian market. The listing marks the 11th listing of an ETF on ADX. Investors now have direct access to eight regional and global markets around the world.

Abdulla Salem Alnuaimi, Chief Executive Officer of ADX congratulated Lunate Capital on the listing. “The strong market interest of this ETF demonstrates the investors’ support and their vote of confidence in ADX as their investment partner and financial trading platform,” he said.

“The Chimera S&P India Shariah ETF allows UAE-based investors easy access to some of the largest Shariah-compliant companies listed in India. India presents an exciting investment opportunity – it is a fast-growing economy and is home to the fourth-largest stock market in the world,” said Sherif Salem, Partner and Head of Public Markets at Lunate.

Designed as a physical, in-kind, liquid, and fully fungible fund, Chimera SP India Shariah ETF tracks Shariah-compliant Indian equities listed on the Indian stock markets and intends to distribute dividends semi-annually, when available.

The listing underscores ADX’s strategic approach to offering diversified and innovative investment solutions, catering to the evolving needs of both retail and institutional investors globally.