India needs it. Estimated 2014 GDP growth of 4.9% is, in the eyes of some analysts, too small for a country of 1 billion people. [A Look at Global Infrastructure ETFs]
Investors have been teased by the promise of major events boosting emerging markets infrastructure spending in the past. For example, the EGShares Brazil Infrastructure Index Fund (NYSEArca: BRXX) has disappointed, although it has been for several years Latin America’s largest economy would play host to the World Cup this year an the Summer Olympics in 2016. BRXX is up just 2.5% this year while the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) is 14%.
Even with a year-to-date gain of almost 21%, INXX has lagged other India ETFs. EPI is up 22.7% this year while the EGShares India Small Cap Fund (NYSEArca: SCIN) and the Market Vectors India Small-Cap Index ETF (NYSEArca: SCIF) are up an average of 26.5%. [Global Small-Cap ETFs Shine While U.S. Funds Falter]
EGShares India Infrastructure Index Fund