World’s first Indian fixed income ETF launched on Xetra

The world’s first Indian fixed income ETF has been listed on Xetra and the Börse Frankfurt venue on Tuesday. The LAM Sun Global ZyFin India Sovereign Enterprise Bond ETF (ISIN IE00BYZ5HD97), jointly issued by..

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ZyFin Holdings Pte. Limited and Sun Global Investments Limited, tracks the performance of the ZyFin India Sovereign Owned Enterprise Bond Index. It also is Europe’s first physically replicating ETF to track the Indian bond market.

The ZyFin India Sovereign Owned Enterprise Bond Index contains bonds from companies of national interest that are majority-owned by the Government of India, so-called Sovereign Owned Enterprises (SOEs). The corporate bonds are denominated in Indian rupees, have an AAA rating and have a residual maturity between 4 years to 20 years. All the bonds in the index are equally weighted, and no more than one bond from one company is included in the index.

“We are pleased to welcome ZyFin as a new ETF issuer on Xetra. The primary listing of the world’s first ETF on Indian corporate bonds enhances our product offering in the segment with efficient and cost-effective access to an asset class that was previously hard to access,” said Michael Krogmann, Head of Cash Market Development at Deutsche Börse.

“Today, with the world’s first Indian fixed income ETF, we are launching our product line of innovative ETFs intended to give investors cost-effective and transparent access to investment opportunities in emerging markets. Building on our many years of macro analytical research expertise in this field, we see our task as offering investors around the world attractive investment opportunities,” said Sanjay Sachdev, Chairman and co-founder of ZyFin Holdings Pte. Limited.

Mihir Kapadia, CEO of Sun Global Investments Limited, said: “The macroeconomic fundamentals for India are very attractive and underlying yields in Indian bonds are high. This new ETF gives global investors access to high quality bonds at attractive yields at a time when developed bond market yields are at very low levels and in fact negative in Germany or Switzerland. We hope investors in the ETF will hold for the medium to long term but for those who need to trade, the liquidity offered on Xetra and the Börse Frankfurt venue will allow them to buy and sell easily.” 

The product offering in Deutsche Börse’s XTF segment currently comprises a total of 1,103 exchange traded funds. This selection, together with an average monthly trading volume of around €16 billion, makes Xetra Europe’s leading trading venue for ETFs.



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