Optimism Remains for This Growth-Fueled India ETF

The Covid-19 pandemic has been exceptionally difficult for societies around the globe, but as countries look to steady themselves, investors can aim to do the same with assets like the VanEck Vectors India Growth Leaders ETF (GLIN).

As the country battles a pernicious second wave of cases, the hope is that a global deployment of the vaccine will eventually catch up with the rising number of cases.

GLIN 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. GLIN’s expense ratio comes in at 0.82%.

Overall, 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

Economic Resilience in India

One thing the Indian economy has shown in responding to the pandemic is its resilience. Not only can the economy withstand the virus, it can also bounce back quickly.

“Last year’s example also showed that once the numbers start to peak off and recede, economic activity certainly tends to come back because of pent-up savings, because of pent-up demand,” said Sonal Varma, India chief economist at Nomura.

Even as the country is curbing cases with lockdowns, some restrictions have become more localized.

“We have enough anecdotal evidence of factories in the state of Maharashtra which are able to operate at 100% capacity despite the lockdowns,” Varma said of Maharashtra, which houses India’s financial capital Mumbai.

“It’s more concentrated in the services side, and the goods side of the economy does continue to do fairly well,” she added.

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