Navi Mutual Fund has filed a draft disclosure document with the Securities and Exchange of India (Sebi) for the Internet of Things ETF Fund of Fund (FoF). It is an open-ended fund that will invest in units of foreign listed funds that provide exposure to companies that can benefit from the wider adoption of Internet of Things (IoT) technology.
The indicative list of foreign ETFs in which Navi Internet of Things ETF Fund or Fund will invest includes Global X Internet of Things ETF or similar foreign ETF, as stated in the document.
Global X Internet of Things ETF, the expected underlying scheme, has net assets of $407.95 million as of April 5. It invests in companies that could potentially benefit from the wider adoption of the Internet of Things (IoT), enabled by technologies such as Wi-Fi, 5G telecommunications infrastructure and fiber. This includes the development and production of semiconductors and sensors, integrated products and solutions, and applications for smart grids, smart homes, connected cars and the industrial internet. The top positions of this ETF on April 5, 2022 include Dexcom Inc, STMicroelectronics, Advantech, Garmin and Skyworks Solutions.
The scheme will be administered by Aditya Mulki. He is the dedicated fund manager for the Overseas ETFs at Navi Mutual Fund.
The schedule will be compared to the Indxx Global Internet of Things Thematic Index, which is designed to track the performance of companies listed in developed markets that are expected to benefit from the increased adoption of the Internet of Things (IoT). Indxx has been developing and maintaining innovative indexing strategies for asset managers, ETF issuers and banks for over 15 years.
The scheme will invest in foreign ETFs up to a maximum of $300 million per mutual fund, within the overall industry cap of $1 billion.