Reuters notes money managers have been pulling assets from other emerging markets to establish and add to positions in India ETFs. For example, investors have pulled nearly $500 million from the iShares China Large-Cap ETF (NYSEArca: FXI) this year while almost $3.2 billion has come out of the iShares MSCI Emerging Markets ETF (NYSEArca: EEM).
There is room for growth with India ETFs. EPI, the WisdomTree offering, has $2.3 billion in assets under management, less than half the AUM totals for FXI and the iShares MSCI Brazil Capped ETF (NYSEArca: EWZ) and barely more than half the assets held by the iShares MSCI South Korea Capped ETF (NYSEArca: EWY), just to name a few. [Buying the Dip in India ETFs]
A new political environment in India, Asia’s third-largest economy, could foster changes that drive additional upside for India ETFs.
“What we found most compelling was Jayant Sinha’s characterization of India’s growth trajectory as one that will be both peaceful and sustainable in nature. This is a growth model he aptly termed “Japan-like,” drawing parallels to Abe and his administration circa 2012. Further, Sinha is confident in Modi’s reelection in 2019, which would set the stage for a Modi-led Indian rule over the next ten years. This would give the single-party-majority Congress sufficient time to put much-needed structural reforms in place,” according to a recent research piece by WisdomTree.
WisdomTree India Earnings Fund