What’s Drawing Assets to India ETFs?
October 18th at 11:00am by Tom Lydon
Of the world’s fastest-growing economies, India and its exchange traded funds (ETFs) seem to be flying higher than most these days. It’s not without good reason.
India is expected to surpass China one day in terms of growth and prosperity, but it’s not the only reason to watch this country.
- According to Smart Stops Blog, India is blessed with a young and capable workforce that is relatively well-educated and English-speaking. They also have a good ratio of children to adults of working age to seniors. [ETF Spotlight: First Trust ISE Chindia ETF.]
- India’s private companies aren’t dependent on state patronage the way that Chinese companies are. In fact, private company growth is primarily fueled by entrepreneurs and business investment. The government has also become proactive in addressing the debt bolstering capital markets. [India ETFs Thrive Under The Microscope.]
Vikas Bajaj for The New York Times reports that in September, foreign investors poured $7.1 billion into Indian stocks and bonds — a monthly record for foreign investment in India’s securities market.
Economists and policy makers here say that the problems in developed economies could benefit emerging nations like India, as Western hedge funds, banks and other investors hunt for growth opportunities.
According to the ETF Analyzer, there are eight ways to get exposure to India’s economy, including:
- PowerShares India (NYSEArca: PIN)
- WisdomTree India Earnings (NYSEArca: EPI)
- iShares S&P India Nifty 50 Index (NYSEArca: INDY)
- Direxion Daily India Bull 2x Shares (NYSEArca: INDL)
Tisha Guerrero contributed to this article.
