India has always been just out of reach for many U.S. investors, but the newest India exchange traded funds (ETFs) are making it much easier to gain access to this rapidly growing market.

Although the market conditions were less than friendly for the debut of the new ETFs, they are a welcome and long-awaited addition to the emerging markets list. WisdomTree India Earnings ETF (EPI) is down 13.1% since its launch on Feb. 21, while the PowerShares India Portfolio ETN (PIN) has dropped 6.1% since it bowed on March 5.

The benchmark Bombay Stock Exchange Sensex stock index is down 11% since Feb. 21.

These two funds might share the "India" name, but their underlying indexes were constructed differently.

Will Swarts for SmartMoney explains that short-term volatility associated with emerging markets should not disillusion investors. The uncomplicated and inexpensive access to India is far more important.

India’s gross domestic product (GDP) has grown an average of 8.8% over the last five years, compared with China’s 10.6%. And while China is heavily dependent on exports, India has plenty of internally focused growth.


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.