Our goal in this profile is to help investors wade through the many competing ETF offerings available. Using our long experience as an ETF publication, and nearly 40 years in the investment business, we can help select those ETFs that matter and may or may not be repetitive. The result is a more manageable list of issues from which to view and make selections.
India remains one of the world’s fastest growing economies that also happens to be a democracy. The middle class continues to expand and western developed continues continue to outsource many jobs to the country. Like other fast growing economies when growth becomes too hot inflation issues rise to the surface. When this happens equity markets tend to become volatile and may suffer more than with other developed markets. With higher betas (volatility) you tend to always to see outperformance on the upside but the opposite when conditions deteriorated. The country’s demographics argue for good consumer opportunities as well as high infrastructure improvements. The Indian government owing to its socialist past continues to move forward but is still often constrained by the entrenched bureaucracy.
India has been a more difficult sector with which to create new products making pure ETF choices more difficult to find. We’re featuring those choices that are available along with multinational ETFs with heavy India exposure.
We’re not ranking these ETFs favoring one over another so don’t let the listing order mislead you. Although we may use some of these in ETF Digest portfolios it’s not our intention to recommend one over another.
Our technical analysis methodology involves using, where possible, monthly charts with enough data to allow investors to stay on the right side of the 12 month moving averages. Further, when market prices move too far above or below this moving average investors can assume a correction in the other direction will eventually take place. In this regard caution is advised.
Direxion Shares offers inverse and leveraged long ETFs for those investors wishing to hedge or speculate.
INP (Barclays iPath India ETN) follows the MSCI Total Return Index which represents 85% of the free-float-adjusted market capitalization of equities by industry group within India. The fund was launched in December 2006. The expense ratio is .89%. AUM equal $622 million and average daily trading volume is 88K shares. As of mid-August 2011 the annual dividend was not available and YTD return -11.34%.
SCIN (EG Shares India Small Cap ETF) follows the INDXX India Small Cap Index which is a free float market capitalization weighted index of 75 companies in the small cap India sector. The fund was launched in July 2010. The expense ratio is .85%. AUM equal $37 million and average daily trading volume is 23K shares. As of mid-August 2011 the annual dividend was $.02 making the current yield .13% and YTD return of -12%.
SCIF (Van Eck India Small Cap ETF) follows the Market Vectors India Small Cap Index which is proprietary and measures what it determines as small cap equities generating most of their revenues from India. The fund was launched in August 2010. The expense ratio is .85%. AUM equal $62 million and average daily trading volume is 45K shares. As of mid-August 2011 the annual dividend was unavailable and YTD return -22%.
INDY (iShares India Nifty 50 ETF) follows the S&P CNX Nifty Index which includes the 50 largest India stocks. The fund was launched in November 2009. The expense ratio is .89%. AUM equal $200 million and average daily trading volume is 98K shares. As of mid-August 2011 the annual dividend was $.01 making the current yield .03% and YTD return -16.75%.
PIN (PowerShares India ETF) follows the Indus India Index, which is intended to track the India market as a whole but includes 50 companies which represent all sectors. The fund was launched in March 2008. The expense ratio is .78%. AUM equal $430 million and average daily trading volume is 510K shares. As of mid-August 2011 the annual dividend was unavailable and YTD return -17%.
INXX (EG Shares India Infrastructure ETF) follows the INDXX India Infrastructure Index which is includes the leading 30 companies involved construction, engineering and utilities to name a few. The fund was launched in November 2010. The expense ratio is .85%. AUM equal $81 million and average daily trading volume is less than 20K shares. As of mid-August 2011 the annual dividend yield was unavailable and YTD return -20%.
INCO (EG Shares India Consumer ETF) follows the INDXX India Consumer Index which naturally follows consumer related stocks listed on the Bombay and National Stock Exchange. The fund was launched in August 2011. The expense ratio is .89%. AUM equal $2 million and trading volume is just too new to rate. Given the newness of the ETF there really is little to say about it at this time. Naturally with a high population and rapidly growing middle class the demographics suggest this sector should provide good long-term returns.
FNI (First Trust Chindia ETF) follows the ISE Chindia ETF which consists of 50 ADRs and or stocks of companies domiciled in China or India. The fund was launched in May 2007. The expense ratio is .60%. AUM (Assets under Management) equal $130 million and average daily trading volume is 48K shares. As of mid-August 2011 the annual dividend was $.05 making the current yield .22% and YTD return -9.50%.
EEB (Guggenheim BRIC ETF) follows the Bank of NY Mellon BRIC Select ADR which includes India with Russia, India and China. We’ve featured this in other related sectors but with the absence of other available India-based ETFs include it here. The fund was launched in September 2006. The expense ratio is .60%. AUM equal $633 million and average daily trading volume is 95K shares. As of mid-August 2011 the annual dividend was $51 making the current yield 1.30% and YTD return -12.10%.
Data as of August 2011
EEB Top Ten Holdings & Weightings
Petroleo Brasileiro SA Petrobras ADR (PBR.A): 7.93%
ETF choices from India will continue to expand but perhaps at a slower pace than in other countries owing to stiffer regulatory burdens. For example, futures trading and short selling are still frowned upon by authorities. Any new offerings may seem seductive but may need seasoning before investors can verify performance trends and validate investing in them. We’ve chosen to feature some that may be repetitive but clearly have something to offer as well. Some other Top 10 lists we’ve published may have similar ETFs within them and can become duplicative but we’ll just have to live with this on occasion.
One thing seems clear when viewing many of these ETFs are similar trend patterns many have presented. This is primarily due to globalization but also is the result of easy monetary conditions throughout the developed world allowing for higher levels of correlation.
For further information about portfolio structures using this or other ETFs see www.etfdigest.com.
You may address any feedback to:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
(Source for holding data is from ETF Database and from various sponsors.)
Our goal in this profile is to help investors wade through the many competing ETF offerings available. Using our long experience as an ETF publication, and nearly 40 years in the investment business, we can help select those ETFs that matter and may or may not be repetitive. The result is a more manageable list of issues from which to view and make selections.
India remains one of the world’s fastest growing economies that also happens to be a democracy. The middle class continues to expand and western developed continues continue to outsource many jobs to the country. Like other fast growing economies when growth becomes too hot inflation issues rise to the surface. When this happens equity markets tend to become volatile and may suffer more than with other developed markets. With higher betas (volatility) you tend to always to see outperformance on the upside but the opposite when conditions deteriorated. The country’s demographics argue for good consumer opportunities as well as high infrastructure improvements. The Indian government owing to its socialist past continues to move forward but is still often constrained by the entrenched bureaucracy.
India has been a more difficult sector with which to create new products making pure ETF choices more difficult to find. We’re featuring those choices that are available along with multinational ETFs with heavy India exposure.
We’re not ranking these ETFs favoring one over another so don’t let the listing order mislead you. Although we may use some of these in ETF Digest portfolios it’s not our intention to recommend one over another.
Our technical analysis methodology involves using, where possible, monthly charts with enough data to allow investors to stay on the right side of the 12 month moving averages. Further, when market prices move too far above or below this moving average investors can assume a correction in the other direction will eventually take place. In this regard caution is advised.
Direxion Shares offers inverse and leveraged long ETFs for those investors wishing to hedge or speculate.
Data as of January 2011
EPI Top Ten Holdings & Weightings
INP (Barclays iPath India ETN) follows the MSCI Total Return Index which represents 85% of the free-float-adjusted market capitalization of equities by industry group within India. The fund was launched in December 2006. The expense ratio is .89%. AUM equal $622 million and average daily trading volume is 88K shares. As of mid-August 2011 the annual dividend was not available and YTD return -11.34%.
Data as of August 2011
INP Top Ten Holdings & Weightings
SCIN (EG Shares India Small Cap ETF) follows the INDXX India Small Cap Index which is a free float market capitalization weighted index of 75 companies in the small cap India sector. The fund was launched in July 2010. The expense ratio is .85%. AUM equal $37 million and average daily trading volume is 23K shares. As of mid-August 2011 the annual dividend was $.02 making the current yield .13% and YTD return of -12%.
Data as of August 2011
SCIN Top Ten Holdings Weightings
SCIF (Van Eck India Small Cap ETF) follows the Market Vectors India Small Cap Index which is proprietary and measures what it determines as small cap equities generating most of their revenues from India. The fund was launched in August 2010. The expense ratio is .85%. AUM equal $62 million and average daily trading volume is 45K shares. As of mid-August 2011 the annual dividend was unavailable and YTD return -22%.
Data as of August 2011
SCIF Top Ten Holdings & Weightings
INDY (iShares India Nifty 50 ETF) follows the S&P CNX Nifty Index which includes the 50 largest India stocks. The fund was launched in November 2009. The expense ratio is .89%. AUM equal $200 million and average daily trading volume is 98K shares. As of mid-August 2011 the annual dividend was $.01 making the current yield .03% and YTD return -16.75%.
Data as of August 2011
INDY Top Ten Holdings & Weightings
PIN (PowerShares India ETF) follows the Indus India Index, which is intended to track the India market as a whole but includes 50 companies which represent all sectors. The fund was launched in March 2008. The expense ratio is .78%. AUM equal $430 million and average daily trading volume is 510K shares. As of mid-August 2011 the annual dividend was unavailable and YTD return -17%.
Data as of August 2011
PIN Top Ten Holdings & Weightings
INXX (EG Shares India Infrastructure ETF) follows the INDXX India Infrastructure Index which is includes the leading 30 companies involved construction, engineering and utilities to name a few. The fund was launched in November 2010. The expense ratio is .85%. AUM equal $81 million and average daily trading volume is less than 20K shares. As of mid-August 2011 the annual dividend yield was unavailable and YTD return -20%.
Data as of August 2011
INXX Top Ten Holdings & Weightings
INCO (EG Shares India Consumer ETF) follows the INDXX India Consumer Index which naturally follows consumer related stocks listed on the Bombay and National Stock Exchange. The fund was launched in August 2011. The expense ratio is .89%. AUM equal $2 million and trading volume is just too new to rate. Given the newness of the ETF there really is little to say about it at this time. Naturally with a high population and rapidly growing middle class the demographics suggest this sector should provide good long-term returns.
FNI (First Trust Chindia ETF) follows the ISE Chindia ETF which consists of 50 ADRs and or stocks of companies domiciled in China or India. The fund was launched in May 2007. The expense ratio is .60%. AUM (Assets under Management) equal $130 million and average daily trading volume is 48K shares. As of mid-August 2011 the annual dividend was $.05 making the current yield .22% and YTD return -9.50%.
Data as of August 2011
FNI Top Ten Holdings & Weightings
EEB (Guggenheim BRIC ETF) follows the Bank of NY Mellon BRIC Select ADR which includes India with Russia, India and China. We’ve featured this in other related sectors but with the absence of other available India-based ETFs include it here. The fund was launched in September 2006. The expense ratio is .60%. AUM equal $633 million and average daily trading volume is 95K shares. As of mid-August 2011 the annual dividend was $51 making the current yield 1.30% and YTD return -12.10%.
Data as of August 2011
EEB Top Ten Holdings & Weightings
ETF choices from India will continue to expand but perhaps at a slower pace than in other countries owing to stiffer regulatory burdens. For example, futures trading and short selling are still frowned upon by authorities. Any new offerings may seem seductive but may need seasoning before investors can verify performance trends and validate investing in them. We’ve chosen to feature some that may be repetitive but clearly have something to offer as well. Some other Top 10 lists we’ve published may have similar ETFs within them and can become duplicative but we’ll just have to live with this on occasion.
One thing seems clear when viewing many of these ETFs are similar trend patterns many have presented. This is primarily due to globalization but also is the result of easy monetary conditions throughout the developed world allowing for higher levels of correlation.
For further information about portfolio structures using this or other ETFs see www.etfdigest.com.
You may address any feedback to: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
(Source for holding data is from ETF Database and from various sponsors.)