Seeking Growth at a Reasonable Price? Look No Further than 'GLIN'

With a global vaccine now in the deployment phase, higher growth is forecasted in economies around the globe. S&P Global Ratings is expecting India to recover by next year, which should certainly help benefit the VanEck Vectors India Growth Leaders ETF (GLIN).

The credit ratings agency is expecting India’s economy to grow 10% in fiscal year 2022, which runs from April 1 thru March 31 in the following year.

“The Indian economy is on track to recover in fiscal 2022,” a S&P Global Ratings report said, according to a CNBC article. “Consistently good agriculture performance, a flattening of the Covid-19 infection curve, and a pickup in government spending are all supporting the economy.”

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 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

India’s Vaccine Deployment Is Key

Global vaccine deployment remains crucial to economies around the world. Per the aforementioned CNBC article, “India’s near-term prospects are positive as a declining number of new Covid-19 cases allows for a gradual relaxation of restrictive social measures, according to S&P.”

“The country last month started the world’s largest mass vaccination campaign against the disease,” the article added. “The effort aims to inoculate as many as 300 million people, most of them frontline workers and high-risk individuals, in the first phase.”

Headwinds still exist, such as mutative forms of Covid-19 appearing in new cases.

“We view Covid vaccinations as critical to India’s recovery over the next few years, and as key to normalizing demand,” the S&P report said, adding that “the emergence of yet more contagious Covid-19 variants with the potential to evade vaccine-derived immunity present a major risk to this recovery.”

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