German asset manager DWS has partnered with Nippon Life India Asset Management for the launch of a Ucits ETF tracking Indian government bonds. The Xtrackers India Government Bond is rupee-denominated and listed on both the London Stock Exchange and Deutsche Boerse. According to DWS, the ETF is designed to address the limited liquidity and accessibility of India’s sovereign debt market. Despite the fact that the market for Indian government-issued securities exceeded US$1 trillion as of August 2022, government bonds are not currently included in the major global bond indices. The ETF will aim to physically replicate JPMorgan’s India Government Fully Accessible Route (FAR) Bond index which tracks bonds made eligible to non-residents under the FAR rule. DWS and local partner and sub-portfolio manager Nippon Life India are also banking on the idea that as India is a net energy producer, the Indian rupee is negatively correlated to energy prices making its bonds more resilient during downturns. © 2022 funds global asia