Pacer launches ActiveAlpha India Quality ETF (INDQ)

Pacer ETFs has launched the Pacer ActiveAlpha India Quality ETF (INDQ), built with Mumbai-based index provider ActiveAlpha. The ETF uses quality, value and momentum screens to narrow a broad universe of Indian equities into a concentrated portfolio of roughly 25 to 30 stocks.

The fund follows a rules-based approach that combines factor screening with an actively informed framework intended to identify higher-quality companies positioned to benefit from India’s longer-term economic growth. The strategy emphasizes security selection rather than matching sector weights.

Pacer developed INDQ with ActiveAlpha, which the firm says has a 12-year track record in Indian securities. The ETF will start from a broad index of Indian companies and apply the three screens to determine the final holdings. Pacer describes the approach as sector-agnostic and focused on individual company characteristics.

Bruce Kavanaugh, Pacer’s executive vice president and head of investments, noted the firm manages $39.8 billion across 64 funds and is best known for its Cash Cow suite of ETFs. He said Pacer’s free-cash-flow international and emerging-market funds have attracted assets this year.

Pacer cited demographic trends, a young consumer base, recent economic reforms and substantial public and private spending on industrial and digital infrastructure as reasons for offering an India-focused product. The firm pointed to India’s rise from the world’s 10th to fifth-largest economy over the past decade and to forecasts that project India becoming the third-largest economy within a few years, with some projections suggesting it could overtake China in 20 to 30 years.

Pacer will monitor opportunities across the Indian market and may apply the ActiveAlpha process to other parts of the economy. INDQ joins Pacer’s international and emerging-market offerings and provides U.S.-based investors a concentrated, factor-driven option for exposure to Indian equities.