It has been a banner year for exchange traded funds tracking Indian stock. That much is highlighted by two India ETFs – the Market Vectors India Small-Cap Index ETF (NYSEArca: SCIF) and the WisdomTree India Earnings Fund (NYSEArca: EPI) – residing among the year’s 10 best non-leveraged ETFs.
However, no two India ETFs are exactly the same and there are opportunities with other funds in addition the aforementioned names. Up almost 30% year-to-date, the PowerShares India Portfolio (NYSEArca: PIN) has impressed as well and now may be offering investors another chance to get involved. [PIN-terest for an India ETF]
Prior to Tuesday, PIN had recently pulled back below its 50-day moving average, which could be a sign a buying opportunity is afoot.
“The first two pullbacks to the 10-week moving average after a stock or ETF breaks out are typically low-risk entry points. Volume in PIN has picked up quite a bit over the past two weeks, but the price action has been holding above the 10-week MA (which is bullish),” said Deron Wagner of Morpheus Trading Group.
PIN’s largest sector allocation is a 24.3% weight to energy. A resurgent rupee helps on that front because India imports the bulk of its domestic energy needs.
Although PIN does not feature large exposure to consumer-related sectors, the ETF will likely benefit along with its rivals as consumer confidence in Asia’s third-largest economy improves. After Narendra Modi’s win in the recent national elections, consumer confidence levels in India jumped in the second quarter, lifting the country to the top position globally. [Play India’s Rising Consumer Confidence With These ETFs]
According to the global consumer confidence index study conducted by Nielsen, India’s consumer confidence level rose seven points to 128 at the end of the second quarter, the Economic Times reports.
PIN allocates 7.2% of its weight to the consumer staples sector. PIN has added nearly $85 million of its $529.4 in assets under management this year, according to PowerShares data.
PowerShares India Portfolio
ETF Trends editorial team contributed to this article.