2 ETFs to Capitalize on Growth in India and China | ETF Trends

Despite the macroeconomic headwinds of global inflation, Asia is offering opportunities for growth. China and India in particular are both seeing their economies expand amid central bank tightening and rising consumer prices.

China’s economy is certainly benefiting from the country’s re-opening after COVID-19 lockdowns added a major speed bump to its economic growth. India is also maintaining its status among the up-and-coming economies in terms of expansion.

“Asia’s economic growth will accelerate to 4.6 per cent in 2023 from 3.8 per cent in the previous year on the back of China’s reopening from Covid-19 restrictions, the International Monetary Fund (IMF) said in a report,” a Deccan Herald report noted. “India will maintain its position as one of the fastest-growing economies in the world, contributing 15.4 per cent to global growth this calendar year.”

According to the IMF, both regions will be responsible for about half of the world’s economic growth. As the report indicated further, China will account for 34.9% of the global growth in 2023, while overall, Asia will account for 70% of the world’s growth.

“Asia’s domestic demand has so far remained strong despite the monetary tightening, while the external appetite for technology products and other exports is weakening,” the IMF noted in its “Regional Economic Outlook” report.

Getting More Leverage From China and India

Short-term traders looking to turbocharge their gains on China or India can consider leveraged exchange traded funds (ETFs) from Direxion Investments. The added leverage allows a trader to further profit from their bullish notions on both countries if their economies continue to bear fruit in the short-term horizon.

For China, consider the Direxion Daily FTSE China Bull 3X ETF (YINN), which seeks daily investment results equal to 300% of the daily performance of the FTSE China 50 Index. That index is comprised of the 50 largest and most liquid public Chinese companies currently trading on the Hong Kong Stock Exchange as determined by FTSE/Russell.

For India, there’s the Direxion Daily MSCI India Bull 2x ETF (INDL), which seeks daily investment results equal to 200% of the performance of the MSCI India Index. That particular index measures the performance of the large- and mid-capitalization segments of the Indian equity market, covering approximately 85% of companies in the Indian equity universe.

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