Emerging Markets Positioning for 2017 Should Include India ETFs

Emerging markets equities and exchange traded funds are rallying this year, a theme that some analysts and investors believe can extend into 2017.

India ETFs have been solid performers this year, though they are lagging broader emerging markets indexes year-to-date, a trend that could change for the better in 2017.

The iShares MSCI India ETF (BATS: INDA), PowerShares India Portfolio (NYSEArca: PIN) and WisdomTree India Earnings ETF (NYSE: EPI) are among the most popular India ETFs.

Over the short-term, India has benefited from cheap energy prices as the country is one of the largest importers of crude oil. Looking further out, economic reforms, including more business-friendly and growth-oriented policies, could help support growth over the medium-term.

Related: India ETFs Surge After $12.9bn Budget Proposal

Many argue that India’s favorable demographics will help support a growing economy. Over a third of India’s 1.3 billion people are between the ages of 15 and 34 with a median age of 27, compared to 37 in China, 38 in the U.S., 41 in developed Europe and 46 in Japan. India’s population is also expected to grow by 1.4%, compared to China’s 0.5% and 0.9% in the U.S.