As the world’s largest wealth fund increases its holdings in India, the average retail investors can also access this emerging market through country-specific exchange traded funds.
PIN tries to reflect the performance of the Indus India Index, which is comprised of 50 Indian stocks selected from the largest companies listed on the two major Indian exchanges, and tilts toward energy 22.9% and information technology 20.8%. The PowerShares offering has a 0.82% expense ratio.
The iShares MSCI India ETF tracks a slightly broader index of 67 Indian stocks, focusing on information tech 22.0% and financials 18.8%. INDA has a 0.67% expense ratio.
The iShares India 50 ETF follows the CNX Nifty Index and has a heavy weight toward banks 22.1%, followed by computer software firms 14.4%. INDY has a slightly higher 0.94% expense ratio.
Indian equities have been among the best performing emerging market assets as elections earlier this year fueled speculation that the country will implement reforms to bolster the economy. Year-to-date, PIN has increased 25.9%, INDA gained 24.6% and INDY rose 30.3%. [India ETFs Look Pricey]
Norway’s sovereign wealth fund, which holds $860 billion in assets under management, increased holdings “significantly” in India as the recently elected Prime Minister Narendra Modi opens the economy to investments and competition, reports Saleha Mohsin for Bloomberg.