Samsung Asset, KODEX India Nifty Midcap 100 ETF Newly Listed

Samsung Asset Management announced on the 8th that it will newly list the 'KODEX India Nifty Midcap 100 ETF,' the first domestic ETF to directly invest in Indian mid- and small-cap stocks.

The KODEX India Nifty Midcap 100 ETF tracks the 'Nifty Midcap 100 Index,' a representative index of mid- and small-cap stocks in the Indian stock market. It diversifies investments across 100 mid- and small-cap growth companies leading India's domestic economy. The ETF focuses on key domestic growth sectors such as infrastructure (40%) and consumer goods (30%), differentiating itself from existing Indian ETFs that primarily consist of large-cap portfolios. This product is designed to effectively capture the growth potential of Indian mid- and small-cap stocks.

Included in the portfolio are strong players in the Indian healthcare sector like Max Healthcare, traditional Indian hotel companies such as Indian Hotels, and BSE, which operates the Mumbai Stock Exchange.

India, the country with the largest population in the world, is rapidly growing based on structural growth factors such as expanding consumer markets, a young workforce, digital infrastructure expansion, and global supply chain restructuring. Indian mid- and small-cap stocks directly reflect the rapidly growing domestic market. India has the largest youth population globally, with a continuously increasing proportion of the middle class driving rapid urbanization and the domestic market. Strong growth momentum is being generated across various industries including consumer goods, finance, infrastructure, and IT services, with mid- and small-cap companies at the forefront of these market changes.

Currently, the Indian government is actively promoting infrastructure development, middle-class tax cuts, support for small and medium-sized enterprises (SMEs), and regulatory reforms. It is also implementing policies such as 'Make in India' and the Production-Linked Incentive (PLI) scheme to strengthen the manufacturing base. These initiatives provide direct benefits to small and medium-sized manufacturers and service providers, expanding the growth foundation for companies. As global supply chains are restructured, India's manufacturing base is being reinforced, while the spread of the digital economy accelerates the growth of IT and platform companies. Indian mid- and small-cap companies are expected to record faster growth than large companies and show strong upward momentum in line with domestic-driven economic growth.

Recently, the Indian stock market experienced a correction due to high valuation concerns with a price-to-earnings ratio (PER) reaching 24 times since November last year. However, since early March this year, the burden has eased to around a PER of 18 times, showing a rebound trend. With the Indian government's domestic stimulus policies and the possibility of interest rate cuts, investment opportunities centered on mid- and small-cap stocks are expected to become more prominent.

Manager Lee Ga-hyun of Samsung Asset Management said, "Although short-term adjustments may occur in the Indian stock market, it remains an attractive market due to its long-term growth potential," and added, "A dollar-cost averaging strategy utilizing the correction period in the Indian stock market will be effective." He also stated, "The launch of this ETF is expected to provide domestic investors with an effective opportunity to access India's future growth."

Samsung Asset Management is forecasting growth in the Indian market and has introduced various India-related product lineups. Following the 2023 launches of KODEX India Nifty 50 and KODEX India Nifty 50 Leverage (synthetic) representative index ETFs, it introduced the country's first India-themed ETF, KODEX India Tata Group ETF, in May last year.