India ETFs: Still Sound Bets in a Rough Emerging Markets Environment

While foreign institutional investors yanked $2.6 billion from Indian stocks in August, one of the largest single month outflows since the global financial crisis, fund managers with a global scope still significantly raised their allocation to Indian stocks in recent months.

For instance, the average global emerging market fund increased India allocation to 10.7% at the end of July, or a 40% rise from typical exposures at the start of 2014, according to EPFR Global. [A Sturdy Emerging Market]

The international Monetary Fund projects India’s economy to expand 7.5% in the year ending March 31, 2016, outpacing China’s growth for the first time in over a decade. In comparison, China’s economy is expected to grow 6.8% this calendar year while Brazil and Russia could contract 1.5% and 3.4%, respectively.

iShares India 50 ETF