Data provider FactSet noted that international stock ETFs (excluding ‘global’ funds containing U.S. exposure) took in $31 billion in net new assets in the first two months of 2021 compared to $30 billion in 2020. As such, a pair of funds investors may want to consider are the VanEck Vectors China Growth Leaders ETF (GLCN) and the VanEck Vectors India Growth Leaders ETF (GLIN).

China and India present an ideal starting point for novice international investors. According to a Wall Street Journal article, “the International Monetary Fund is projecting 5.5% global GDP growth in 2021, with growth in emerging markets and developing economies as a group projected at 6.3%, led by India (11.5%) and China (8.1%).”

The flight to international ETFs was spurred even further lately with volatility creeping back into U.S. equities. Now, it’s time for international equities to shine.

“The domestic equity run was so extraordinary that investors ended up being underweight in both developed and emerging markets” outside the U.S., says Andrew Mies, chief investment officer at 6 Meridian in Wichita, Kansas. “The recent flows show a move to rebalance.”

“It’s really an exciting time,” says Gargi Chaudhuri, head of U.S. iShares markets and investments strategy at BlackRock. “International investing is happening in more diverse ways than in the past,” she says.

A China Growth Option

GLCN seeks to replicate as closely as possible the price and yield performance of the MarketGrader China All-Cap Growth Leaders Index. The index is comprised of Chinese equity securities which are generally considered by the index provider to exhibit favorable fundamental characteristics according to its proprietary scoring methodology.

Key features of GLCN:

  • Access to fundamentally sound Chinese companies with attractive growth potential at a reasonable price (‘GARP’)
  • Exposure to the entire Chinese opportunity set regardless of size or listing location
  • Potential to outperform traditional capitalization-weighted benchmarks by selecting top-ranked companies

 

GLCN Chart

An India Growth Option

GLIN seeks to replicate as closely as possible the price and yield performance of the MarketGrader India All-Cap Growth Leaders Index. The index is comprised of equity securities which are generally considered by the index provider to exhibit favorable fundamental characteristics according to the index provider’s proprietary scoring methodology.

GLIN gives investors:

  • Access to fundamentally sound Indian companies with attractive growth potential at a reasonable price (‘GARP’)
  • The entire Indian opportunity set regardless of size
  • Potential to outperform traditional capitalization-weighted benchmarks by selecting top-ranked companies

 

GLIN Chart

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