Exchange-traded fund (ETF) investors can get diversified exposure via international funds, but for more concentrated, country-specific exposure, more due diligence is required. That said, one country to consider when it comes to rebounding from the Covid-19 pandemic is India, which is showing early signs of recovery.
Per a Times of India report, “Union Finance Minister Nirmala Sitharaman on Tuesday said the growth rate of the country’s gross domestic product (GDP) might be “near zero” this fiscal year. However, with signs of economic revival, India might well be one of the fastest-growing large economies in the next fiscal year, she said, while addressing the CERAWeek India Energy Forum.”
“Sitharaman’s comments come at a time when the International Monetary Fund (IMF) has projected India’s GDP to contract 10.3 per cent this fiscal year, revised from its forecast of a 4.5 per cent decline in June,” the report added further. “India’s was the fastest-growing large economy till recently, but has been overtaken by China. For instance, in 2019-20, India’s economy grew 4.2 per cent, while China expanded 6 per cent in 2019.”
ETF investors have options when it comes to India ETFs. They can go with growth-focused funds, or get simple, broad-based exposure.
ETF Opportunities in India
One ETF to review is the VanEck Vectors India Growth Leaders ETF (GLIN). The fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of the MarketGrader India All-Cap Growth Leaders Index.
The fund invests substantially all of its assets in the Subsidiary, a wholly-owned subsidiary located in the Republic of Mauritius. 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.
Investors yearning for broad-based exposure to India can use the iShares MSCI India ETF (CBOE: INDA). INDA seeks to track the investment results of the MSCI India Index composed of Indian equities, which measures the performance of equity securities of companies whose market capitalization, as calculated by the index provider, represents the top 85% of companies in the Indian securities market.
Finally, short-term traders seeking leverage can utilize the Direxion Daily MSCI India Bull 3x ETF (NYSEArca: INDL). INDL seeks daily investment results equal to 300% of the daily performance of the MSCI India Index, which is designed to measure the performance of the large- and mid-capitalization segments of the Indian equity market, covering approximately 85% of the Indian equity universe.
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