Pacer ETFs Launches New India Quality ETF

The firm delivers a new strategy that provides targeted exposure to India's equity market using a disciplined, factor-based approach.

Apr. 1, 2026 at 2:19pm

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Pacer ETFs, a leading U.S. issuer of free cash flow ETFs, has announced the launch of the Pacer ActiveAlpha India Quality ETF (INDQ). The new fund is designed to provide investors with targeted exposure to high-quality Indian companies positioned to benefit from India's long-term economic growth through a disciplined, factor-based approach that combines quality, value, and momentum.

Why it matters

As investors seek new sources of growth and diversification beyond the U.S., India is standing out as one of the strongest structural opportunities in global equities. Supported by favorable demographics, a growing middle class, rising domestic consumption, large-scale infrastructure investment especially in technology, and improving macroeconomic stability, India offers a rare blend of scale, resilience, and long-term growth potential.

The details

The Pacer ActiveAlpha India Quality ETF strategy begins with a broad universe of companies drawn from the Nifty 500 Index and Nifty Microcap 250 Index, then narrows that universe to a concentrated portfolio of approximately 20 to 30 companies based on a composite assessment of quality, value, and momentum factors. The index is rebalanced quarterly, with weighting caps designed to support diversification while maintaining emphasis on the highest-ranked holdings.

  • The Pacer ActiveAlpha India Quality ETF (INDQ) launched on April 1, 2026.

The players

Pacer ETFs

A strategy-driven exchange-traded fund provider with 60 ETFs and over $38.6 billion in assets under management.

ActiveAlpha

A Mumbai-based index provider that partnered with Pacer ETFs to develop the strategy for the Pacer ActiveAlpha India Quality ETF.

Sean O'Hara

President of Pacer ETF Distributors.

Joe Thomson

Founder and President of Pacer Financial, Inc.

Raghav Kapoor

Founder & Managing Partner of ActiveAlpha.

Vineet Sachdeva

Founder & Managing Partner of ActiveAlpha.

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What they’re saying

“India continues to stand out as one of the strongest structural growth stories globally. With INDQ, we're offering a differentiated, rules-based approach focused on identifying fundamentally strong companies positioned to benefit from that long-term growth.”

— Sean O'Hara, President of Pacer ETF Distributors

“We believe advisors benefit from having more choice when seeking solutions for specific portfolio needs. By partnering with best-in-class service providers, we are able to bring high-quality, differentiated strategies like INDQ to market and help advisors access compelling opportunities for their clients.”

— Joe Thomson, Founder and President of Pacer Financial, Inc.

“We are proud to partner with Pacer ETFs, a recognized leader in bringing innovative, rules-based strategies to market. We look forward to bringing our deep expertise in the Indian markets to the partnership.”

— Raghav Kapoor, Founder & Managing Partner of ActiveAlpha

“With the ActiveAlpha India Quality Index, we set out to create a disciplined approach to identifying companies we believe are well positioned to benefit from India's long-term growth story through a focus on quality, value, and momentum.”

— Vineet Sachdeva, Founder & Managing Partner of ActiveAlpha

What’s next

Pacer ETFs plans to continue expanding its lineup of specialized, rules-based ETFs to provide investors with more options for accessing global growth opportunities.

The takeaway

The launch of the Pacer ActiveAlpha India Quality ETF demonstrates Pacer ETFs' commitment to delivering innovative, differentiated strategies that can help investors diversify their portfolios and capitalize on the long-term growth potential of emerging markets like India.