iShares India 50 ETF (NASDAQ:INDY), Trade Ideas

iShares India 50 ETF

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Exchange Traded Concepts Trust India Internet & Ecommerce ETF

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INDA ETF is up 16.3% over the past year, followed by the iShares MSCI Brazil ETF at 12.9%; Russian, Chinese and South African equity lag far behind.

INDA Outperforming BRICS Peers, Ray Dalio Says &#39;India Is At A Very Special Moment&#39; At Davos

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Signal(s) to enter, add, reduce, exit, hold or change.



India: Apple Creating Opportunity For Investors In Up And Coming Manufacturing Powerhouse

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Several major technology companies, including Apple Inc (NASDAQ: AAPL), Samsung Electronics Co (OTC: SSNLF), and HP Inc (NYSE: 

India&#39;s Licensing Mandate Disrupts Laptop and Tablet Imports from Apple, Samsung, and HP

Steve Weiss On CNBC Said He Bought ETFs INDA, SMIN, INDY

Indian equity, as tracked by the iShares MSCI India ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/INDA#BATS">INDA</a>), has been <a href="https://www.benzinga.com/topic/brics">outperforming all other BRICS nations</a>. 
The ETF is up 16.3% over the past one year, followed closely by the iShares MSCI Brazil ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWZ#NYSE">EWZ</a>) at 12.9%, while Russian, Chinese and South African equity <a href="https://www.benzinga.com/quote/INDA/news">lag far behind</a>.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="650" height="650" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/17074753/INDA-vs-EWZ-vs-FXI-vs-EZA.jpeg" alt="" class="wp-image-184329" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/17074753/INDA-vs-EWZ-vs-FXI-vs-EZA.jpeg 650w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/17074753/INDA-vs-EWZ-vs-FXI-vs-EZA-300x300.jpeg 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/01/17074753/INDA-vs-EWZ-vs-FXI-vs-EZA-150x150.jpeg 150w" sizes="(max-width: 650px) 100vw, 650px" /></figure>
Billionaire hedge fund manager, Ray Dalio, has long been an investor in the emerging markets. His hedge fund, Bridgewater Associates&#8216; top holding is the iShares Core MSCI Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IEMG#NYSE">IEMG</a>) which has an 18.52% portfolio allocation towards India. Dalio&#8217;s hedge fund has another 1.42% invested in the Vanguard FTSE Emerging Markets ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VWO#NYSE">VWO</a>) which has just over 20% allocated in Indian equity.
Also Read: <a href="https://www.benzinga.com/trading-ideas/23/12/36413953/tesla-could-start-2024-with-a-bang-india-division-manufacturing-facility-rumors-heat-up">Tesla Could Start 2024 With A Bang: India Division, Manufacturing Facility Rumors Heat Up</a>
At the recent World Economic Forum (WEF) 2024 event in Davos, Dalio <a href="https://www.businesstoday.in/wef-2024/story/wef-2024-india-is-at-a-very-special-moment-for-a-number-of-reasons-says-bridgewaters-ray-dalio-413645-2024-01-16">spoke</a> about India. In an interview with Business Today TV, Dalio told Siddharth Zarabi that &#8220;India is at a very special moment&#8230; not burdened by an excessive amount of debt.&#8221;
Dalio emphasized a prudent approach to Indian markets. Acknowledging their current high valuations, Dalio advised cautious exposure to the economy. Dalio, a strong believer in market cycles, said that he would have exposure to Indian markets but &#8220;wouldn&#8217;t be overextended&#8221; at their current valuations. 
He also highlighted India&#8217;s distinct advantage that the economy is not burdened by an excessive amount of debt. &#8220;It strikes me very much similar to where China was when Deng Xiaoping came in roughly 1980,&#8221; said Dalio. Dalio also expressed his hope for India&#8217;s market openness and praised Prime Minister Narendra Modi&#8216;s leadership.
Besides the emerging market ETFs that Dalio is invested in an INDA, other ways to get exposure to Indian equity are the WisdomTree India Earnings Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPI#NYSE">EPI</a>), the First Trust India Nifty 50 Equal Weight ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFTY#NASDAQ">NFTY</a>), the iShares India 50 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/INDY#NASDAQ">INDY</a>) and the Exchange Traded Concepts Trust India Internet &amp; Ecommerce ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INQQ#NYSE">INQQ</a>).
Now Read: <a href="https://www.benzinga.com/markets/asia/24/01/36655211/apple-unveils-15-storey-office-in-indias-silicon-valley-amid-shifting-focus-from-china">Apple Unveils 15-Storey Office In India&#8217;s Silicon Valley Amid Shifting Focus From China</a>

INDA Outperforming BRICS Peers, Ray Dalio Says 'India Is At A Very Special Moment' At Davos

Signal(s) to enter, add, reduce, exit, hold or change.
<img alt="" src="https://thearorareport.com/wp-content/uploads/2023/09/2023-09-25_13h52_28.png" style="height:288px; width:624px" />
India represents an opportunity for long term investors.&nbsp;However, India is a developing market.&nbsp;It is important to follow billionaire techniques as encapsulated in Trade Management Guidelines by The Arora Report to do exceptionally well as an investor, especially in emerging markets.
<h3>The Chart</h3>
Please&nbsp;<a href="https://thearorareport.com/stock-market-chart-analysis-india-small-caps-smin-iwm-09252023">click here</a>&nbsp;for a chart that compares India Small Caps ETF&nbsp;iShares MSCI India Small-Cap ETF&nbsp;(BATS: <a class="ticker" href="https://www.benzinga.com/stock/smin#BATS">SMIN</a>) to&nbsp;U.S. Small Cap ETF&nbsp;iShares Russell 2000 ETF&nbsp;(ARCA: IWM).&nbsp;Note the following:
<ul>
<li>The chart shows that year to date, small caps in India have outperformed small caps in the&nbsp;U.S. by 18.2%.</li>
<li>Small caps are often more inefficient than large caps due to lack of analyst coverage.&nbsp;For this reason, for prudent long term investors, small caps often provide a better opportunity than large caps.</li>
<li>India represents a large opportunity in small caps.</li>
</ul>
<h3>Apple News</h3>
Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>) is increasing production in India.&nbsp;iPhone 15s made in India were available for launch day, which is progress from over last year when made in India iPhones were available after a delay.
There are indications that Apple intends to increase production in India to approximately $40B by 2028.
In The Arora Report analysis, while Apple has not yet shared plans to manufacture iPads and MacBooks in India, Apple will likely begin making AirPods in India next year.
<h3>Magnificent Seven</h3>
Among the Magnificent Seven stocks, Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) is exploring major investments in India.&nbsp;Alphabet Inc Class C (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/goog#NASDAQ">GOOG</a>), Microsoft Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/msft#NASDAQ">MSFT</a>), Amazon.com, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amzn#NASDAQ">AMZN</a>) and Meta Platforms Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meta#NASDAQ">META</a>) already have major investments in India.&nbsp;Expect them to add to their investments in India.
<h3>Manufacturing Powerhouse</h3>
We previously shared with you that manufacturing is moving out of China and into India.&nbsp;India wants to be a manufacturing powerhouse.
<h3>Challenges</h3>
At present, India must overcome two hurdles to become a manufacturing powerhouse.
<ul>
<li>India does not have a strong supply chain for materials comparable to China&rsquo;s strong supply chain.</li>
<li>India does not have a trained workforce on par with China.</li>
</ul>
On a positive note, India is rapidly training new workers and has a young demographic.
<h3>Technicals</h3>
In the short term, technicals are overbought.&nbsp;This means that investors need to be patient and wait for a pullback in the buy zone.
<h3>Valuation</h3>
One of the risks investors should be aware of is that India is an expensive market.&nbsp;This is due to great long term growth prospects.&nbsp;This is also another reason to buy only on a pullback in the buy zone.
<h3>Opportunity</h3>
In The Arora Report analysis, India is one of the best opportunities in large economies for the long term.&nbsp;In the short term, India is overbought and expensive.
<h3>Small Caps</h3>
Small caps are doing well.&nbsp; In The Arora Report analysis, they will continue to do well.&nbsp;In India, over the long term, small caps may perform better than large caps.
<h3>ETFs Of Choice</h3>
ETFs for investing in India are:
<ul>
<li>VanEck Digital India ETF&nbsp;(ARCA: DGIN)</li>
<li>WisdomTree India Earnings ETF&nbsp;(ARCA: EPI)</li>
<li>Franklin FTSE India ETF&nbsp;(ARCA: FLIN)</li>
<li>VanEck India Growth Leaders ETF&nbsp;(ARCA: GLIN)</li>
<li>Columbia India Consumer ETF&nbsp;(ARCA: INCO)</li>
<li>iShares MSCI India ETF&nbsp;(BATS: <a class="ticker" href="https://www.benzinga.com/stock/inda#BATS">INDA</a>)</li>
<li>Nifty India Financials ETF&nbsp;(ARCA: INDF)</li>
<li>Direxion Daily MSCI India Bull 2X Shares&nbsp;(ARCA: INDL)</li>
<li>iShares India 50 ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/indy#NASDAQ">INDY</a>)</li>
<li>India Internet &amp; Ecommerce ETF&nbsp;(ARCA:&nbsp;INQQ)</li>
<li>WisdomTree India ex-State-Owned Enterprises Fund&nbsp;(ARCA: IXSE)</li>
<li>First Trust India Nifty 50 Equal Weight ETF&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nfty#NASDAQ">NFTY</a>)</li>
<li>Invesco India ETF (ARCA: PIN)</li>
<li>iShares MSCI India Small-Cap ETF&nbsp;(BATS: <a class="ticker" href="https://www.benzinga.com/stock/smin#BATS">SMIN</a>)</li>
</ul>
The Arora Report call is to focus on&nbsp;EPI&nbsp;and SMIN.
Prudent investors should be patient and wait for a pullback.
<h3>EPI&nbsp;Zones</h3>
The buy zone is ***.&nbsp;To see the locked content, <a href="https://thearorareport.com/sub">please click here to start a free trial</a>.
The short term rating is ***.
The medium term rating is ***.
The long term rating is a ***.
<h3>SMIN&nbsp;Zones</h3>
The buy zone is ***.
The short term rating is ***.
The medium term rating is ***.
The long term rating is a ***.
<h3>What To Do Now</h3>
Those in India ETF&nbsp;EPI&nbsp;or India Small Caps ETF&nbsp;SMIN&nbsp;who have taken partial profits taking advantage of the strength may consider continuing to hold.
Those who have not taken partial profits may consider taking partial profits.
Those not in&nbsp;EPI&nbsp;or&nbsp;SMIN&nbsp;may consider following the parameters given above.
The Arora Report is known for its accurate calls.&nbsp;The Arora Report correctly called the 2008 financial crash, the start of a mega bull market in 2009, the COVID crash, the post-COVID bull market, and the 2022 bear market.&nbsp; Please click here to sign up for a free forever <a href="https://thearorareport.com/generate-wealth-newsletter">Generate Wealth Newsletter</a>.&nbsp;

Several major technology companies, including&nbsp;Apple Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>),&nbsp;Samsung Electronics Co&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/ssnlf#OTC">SSNLF</a>), and&nbsp;HP Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hpq#NYSE">HPQ</a>), have halted new&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/05/32481544/apple-samsung-harbor-india-ambitions-minister-says" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">imports of laptops and tablets</a>&nbsp;to India following a surprising ban on inbound shipments without a license.&nbsp;
Laptop makers were expecting some government measures to reduce reliance on imports and promote local production, but the sudden imposition of licensing requirements has disrupted the industry, Bloomberg&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2023-08-03/india-imposes-curbs-on-pc-import-as-modi-pushes-local-production?srnd=technology-vp&amp;sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">reports</a>.
Tech firms are now engaging with New Delhi to quickly obtain licenses, especially with the Diwali shopping season and the back-to-school period approaching.&nbsp;
The ban has added challenges for manufacturers already facing a global glut of inventory and sluggish sales growth triggers. This move may lead to delayed product launches or shortages in a market heavily relying on overseas shipments.
The import restriction marks India&#39;s efforts to reduce import dependence and foster a world-class tech manufacturing industry. Prime Minister Narendra Modi&#39;s government is seeking applications for a 170 billion-rupee ($2.1 billion) financial incentive plan to attract laptop, tablet, and hardware manufacturers to the country as companies seek to diversify their supply chains beyond China.
The sudden policy shift coincides with Samsung, Apple and its suppliers, and other U.S. companies&#39; preference towards the country to diversify their&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/08/33485951/apple-supplier-foxconn-raises-investment-plans-for-new-component-plants-in-indias-karnataka" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">supply chain base</a>.
Also Read:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/government/23/07/33436873/after-micron-and-applied-materials-india-attracts-amds-400m-investment-for-new-bangalore-campus-by-2" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">After Micron and Applied Materials, India Attracts AMD&#39;s $400M Investment for New Bangalore Campus by 2028</a>
Price Action:&nbsp;AAPL shares traded lower by 1.72% at $187.88 premarket on the last check Friday.
Photo via Wikimedia Commons
Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

India's Licensing Mandate Disrupts Laptop and Tablet Imports from Apple, Samsung, and HP

<ul>
<li>As Sequoia Capital looks beyond current investment weakness in new companies in Asia, it has raised $2.85 billion to fund Indian and Southeast Asian startups.</li>
<li><a class="editor-rtfLink" href="https://www.reuters.com/markets/funds/sequoia-raises-285-billion-india-southeast-asia-funds-2022-06-14/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">According to the Reuters report</a>, the fundraising is Sequoia&#39;s largest so far for India and Southeast Asia.</li>
<li>Money raised included $850 million in Sequoia&#39;s first fund dedicated to Southeast Asia. It has invested in Southeast Asian startups since 2015 from a common India fund.</li>
<li>The remaining $2 billion has been raised in Indian venture and growth funds.</li>
<li>&quot;This fundraise, which comes at a time when markets are starting to cool after a very long bull run, signals our deep commitment to the region,&quot; Sequoia said.</li>
<li>Funding of Indian startups has slowed since a record $35 billion fundraising last year. Companies have struggled to raise capital and are forced to cut the workforce.</li>
<li>Photo by Gerd Altmann from Pixabay</li>
</ul>

Hedge Funds

General

Sequoia Capital Closes Largest India and Southeast Asia Dedicated Fund: Reuters

A senior executive at global private equity company General Atlantic&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/markets/europe/exclusive-general-atlantic-plans-2-billion-investment-india-southeast-asia-2022-05-22/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">told Reuters</a>&nbsp;that the firm plans to invest $2 billion in India and Southeast Asia over the next two years as lowering valuations make the region&#39;s startups more attractive.
What happened:&nbsp;According to Sandeep Naik, General Atlantic&#39;s head of business in India and Southeast Asia, the company is in early-stage investment talks with about 15 companies in sectors like technology, financial services, retail, and consumer.
General Atlantic is ready to ease its purse strings after investing just $190 million in Indian startups in 2021, its lowest annual figure ever, Naik said in an interview at the World Economic Forum in the Swiss ski town of Davos.
Why it&#39;s Important:&nbsp;&quot;The realism is setting in. We were waiting for the value creation to happen. We are now ready,&quot; Naik said of General Atlantic&#39;s plans for India and Southeast Asia, where it has investments of more than $4.5 billion, mainly in India.
&quot;We are very bullish on India, Indonesia, and Vietnam,&quot; Naik added, omitting to name any companies under consideration.
Given the challenging market conditions and decreasing values, General Atlantic advises its portfolio companies to consider consolidation opportunities.
&quot;Now is the best time to consolidate... Strong gets stronger,&quot; Naik explained.

iShares MSCI Indonesia Investable Market Index Fund

EIDO

General Atlantic Intends To Invest $2B In India, Southeast Asia: Reuters

<ul>
<li>India&#39;s largest IPO has started taking orders from individuals and other categories after attracting anchor investors,&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2022-05-04/lic-starts-retail-orders-in-india-s-top-ipo-amid-fickle-markets?srnd=premium-asia&amp;sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Bloomberg reports</a>.</li>
<li>Retail investors can place their orders for shares of India&#39;s state-controlled&nbsp;Life Insurance Corporation&nbsp;until May 9.</li>
<li><a class="editor-rtfLink" href="https://www.benzinga.com/news/22/05/26954554/indias-largest-ipo-attracts-foreign-investors" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Also Read:&nbsp;India&#39;s Largest IPO Raises $736M Ahead of Listing, Attracts Foreign Investment</a></li>
<li>Retail investors will be allocated 35% of the stock on sale and will enjoy an ₹45 discount on the IPO price.&nbsp;</li>
<li>LIC&#39;s policyholders will have 10% earmarked with ₹60 off on each share of the whole issue.</li>
<li>The $2.7 billion deal, slashed by more than half in size amid the war in Ukraine and rising interest rates worldwide, is critical for the Indian government to achieve its fiscal deficit target.</li>
<li>While the offer attracted wealth funds from Singapore and Norway, most institutional investors are local, with 15 domestic mutual funds accounting for 71% of the anchor allocation.</li>
<li>An analyst saw a limited downside given the attractive valuation as LIC shares were available at a significant discount to peers at the upper band of the issue price. The retail investor discount served as the cherry on the cake.</li>
<li>Photo via Wikimedia Commons</li>
</ul>

IPOs

India's Biggest IPO Enjoys Analyst Confidence Thanks To Attractive Valuation, Retail Investor Discount

<ul>
<li>India&rsquo;s largest-ever public offering has attracted anchor investors, including Norway&rsquo;s sovereign wealth fund and the Singaporean government, raising ₹56.3 billion ($736 million) ahead of its initial public offering,&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2022-05-03/norway-singapore-wealth-funds-invest-in-india-s-largest-ipo?sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Bloomberg reports</a>.</li>
<li>The 123 anchor investors joining&nbsp;Life Insurance Corp of India&rsquo;s&nbsp;IPO committed to purchasing shares at ₹949 per share, the top end of a marketed range.&nbsp;</li>
<li>LIC is the country&rsquo;s oldest insurer and had the market to itself until the government opened it up to the private competition in 2000.&nbsp;</li>
<li>LIC has a 60% market share of India&rsquo;s 24-company-strong life insurance market, Bloomberg notes.</li>
<li>Due to the Ukraine crisis, the Indian government has pared back its original fundraising goal by ~ 60%.&nbsp;</li>
<li>The investors included the Norwegian fund, the Singapore government, and 15 domestic mutual funds accounting for 71% of the anchor allocation.&nbsp;</li>
<li>The IPO previously drew comparisons with the $29.4 billion listing of Gulf oil giant&nbsp;Saudi Arabian Oil Co.</li>
<li>Orders from retail investors for the listing, which could raise ₹210 billion in total, will be taken starting on May 4.</li>
<li>Photo via Wikimedia Commons</li>
</ul>

India's Largest IPO Raises $736M Ahead of Listing, Attracts Foreign Investment

<ul>
<li>The U.S.-China trade war can fulfill India&rsquo;s aspiration to become the global tech hub capitalizing on the global shift in China&rsquo;s manufacturing supply chains,&nbsp;<a class="editor-rtfLink" href="https://www.bloomberg.com/news/articles/2021-03-30/china-u-s-tensions-can-boost-india-s-tech-dreams-report-says?sref=TBDibEcD" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Bloomberg reports</a>.</li>
<li>U.S. growing focus on China-free supply chains in specific sectors and India&rsquo;s membership in the Quad grouping with the U.S., Australia, and Japan will bode well for the country.</li>
<li>The nations held their first summit earlier in March, partly to resolve concerns about Beijing&rsquo;s growing economic and military stature. India and China engaged in violent clashes along their disputed Himalayan border in 2020. Both the armies pulled back their troops in February to ease the tension.</li>
<li>Apple Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/aapl#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">AAPL</a>),&nbsp;Amazon.Com Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/amzn#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">AMZN</a>), and&nbsp;Samsung Electronics Co Ltd&rsquo;s&nbsp;(OTC:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/ssnlf#OTC" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">SSNLF</a>)&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/21/02/19742625/apple-looks-to-make-ipads-in-india-this-year-in-a-shift-away-from-china-report" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">manufacturing production shift</a>&nbsp;to India and Southeast Asia further intensified the U.S. Chinese tensions.</li>
<li>The pandemic acted as a major boost, intensified by India&rsquo;s launch of new productivity incentive programs, labor base, and flourishing domestic market for devices and internet services.</li>
<li>However, India will have to tackle manufacturing bottlenecks like excessive regulations, taxes, and non-coordination between the central and state government levels to attract more investors. India&rsquo;s ability to develop smartphone manufacturing will be a major deciding factor considering China&rsquo;s dominion status in the industry.</li>
<li>India could lobby Washington to attract&nbsp;Taiwan Semiconductor Manufacturing Co Ltd&rsquo;s&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/tsm#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TSM</a>) manufacturing plants.</li>
</ul>

US-China Tension Can Spur India's Global Tech Hub Aspirations: Bloomberg

Traditional diversified emerging markets exchange traded fund indexes are often heavily allocated to a small number of countries. While the MSCI Emerging Markets Index features exposure to approximately 15 countries, the widely followed benchmark is Asia-heavy.
And while the MSCI Emerging Markets Index is heavy on Asian economies, what that really means is a large combined weight to China, South Korea and Taiwan. That trio combines for more than 57 percent of the benchmark&#39;s weight. India, Asia&#39;s third-largest economy, is just 7.8 percent of that index&#39;s geographic exposure.
Investors looking for focused India exposure have plenty of ETFs to consider, including the iShares MSCI India ETF (CBOE: INDA) and the iShares India 50 ETF (NASDAQ: <a class="ticker" href="/stock/indy#NASDAQ">INDY</a>). INDA and INDY are down an average of 6 percent year-to-date, but those declines could signal buying opportunities in the eyes of some experts.
<h3>
	Progress And Bright Spots</h3>
The role of government is always an issue to monitor with emerging markets assets, and India is no exception. Fortunately, the current regime has been favorable for foreign investors.
&ldquo;A brightening economy is boosting earnings expectations and, we believe, offers a cushion against potential trade-related shocks,&rdquo; BlackRock said&nbsp;<a href="https://www.blackrockblog.com/2018/03/20/emerging-markets-opportunities/">in a recent note</a>. &ldquo;The progress India has made in cutting back costly government subsidies on items such as fuel is a prime example of the advances being made in structural reforms under Prime Minister Narendra Modi. Subsidies as a percentage of gross domestic product have declined in recent years.&rdquo;
Since Modi came to power in May 2014 through the end of 2017, INDA and INDY were up an average of about 36.5 percent, while the MSCI Emerging Markets Index was higher by 20.9 percent over the same period. INDA and INDY have $5.22 billion and $1.13 billion, respectively, in assets under management.
<h3>
	Reforms Matter</h3>
The idea of government reforms in developing countries is not new, but effectiveness of reforms is what really matters to investors. On that note, India is on a strong path, according to BlackRock.&nbsp;
&ldquo;EM reform is not a new theme. But reform momentum has picked up significantly in a few major countries, such as China and India, fostering a more sustainable growth path,&rdquo; said BlackRock. &ldquo;EM equities are coming off a stellar 2017, but we see room for more gains as investors flock back after years of EM underallocation. India &mdash; among our favored picks within EM &mdash; is a good example of what is on offer.&rdquo;
India&#39;s efforts to reform its banking system are important to foreign investors, because INDA and INDY have large financial services exposure. INDA&#39;s weight to that sector is 23.4 percent, which is dwarfed by the 35.4 percent INDY devotes to financials.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/18/03/11394346/chands-a-concentration-concern-for-consumer-discretionary-et">Risk In A Popular Sector</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/03/11394344/waiting-on-value-etfs-to-bounce-back-in-2018">Value ETFs Look Interesting</a>

Finding Emerging Market Exposure With Indian Equities

India&#39;s central bank kept its benchmark interest rate steady at its recent monetary policy meeting, owing to inflation woes and concerns around fiscal deficit. The Reserve Bank of India (RBI) also increased its inflation forecast for the Jan-March quarter.
Into the Headlines
RBI kept the repo rate intact at 6%, the rate at which the central bank lends short-term money to commercial banks. Moreover, it also left the reverse repo rate intact at 5.75%, the rate at which it borrows from banks.
In the latest union budget, finance minister Arun Jaitley announced that the fiscal deficit target for 2017-18 was being revised upward to 3.5% of GDP. Moreover, rising fuel prices have also contributed to inflation woes in the country (read: <a href="https://www.zacks.com/stock/news/291371/india-etfs-in-focus-on-union-budget-release">India ETFs in Focus on Union Budget Release</a>). &nbsp;
&quot;Fiscal slippage as indicated in the Union Budget could impinge on the inflation outlook. Apart from the direct impact on inflation, fiscal slippage has broader macro-financial implications, notably on economy-wide costs of borrowing which have already started to rise. This may feed into inflation,&quot; per a Firstpost article citing a statement by the Monetary Policy Committee.
As a result, the central bank raised its inflation forecast to 5.1% for the fourth quarter of fiscal 2017. Moreover, it expects inflation to shoot up to the range of 5.1%-5.6% in the first half of fiscal 2018, before dropping to 4.5-4.6% in the second half. However, a rate hike is not expected in the near future, as Indian policymakers will not want to deprive the country of economic growth when it is in desperate need to create jobs.
In the last budget of Modi&#39;s current term, Jaitley announced that the government plans to spend $218.1 billion (INR 14,000 billion) on rural infrastructure, in turn creating jobs for the rural population.
Economic Scenario
Coming to the economic data points, India&#39;s GDP grew 6.3% year over year in the third quarter of 2017 compared with a three-year low of 5.7% in the previous quarter. The central bank revised its GDP estimates for fiscal 2017-18 as well as 2018-19. RBI expects the Indian economy to grow 6.6% in 2017-18 and 7.2% in 2018-19, in terms of Gross Value Added &ndash; GVA.
Moving to the manufacturing scenario, the Nikkei India Manufacturing Purchasing Managers&#39; Index (PMI) decreased to 52.4 in January compared with a five-year high at 54.7 in December 2017. A reading above 50 indicates expansion.
&quot;Following December&#39;s stellar performance, growth in the Indian manufacturing economy lost some impetus, reflected by slower growth in output, new orders and employment. Nevertheless, these key PMI indicators registered in expansion territory signaling the sector stayed on its track to recovery,&quot; per Aashna Dodhia, <a href="https://www.markiteconomics.com/Survey/PressRelease.mvc/59457d022b4b491eb30636487c4b42ec">economist</a> at IHS Markit, which compiles the survey.
Let us now discuss a few ETFs focused on providing exposure to the emerging market nation.
iShares MSCI India ETF INDA&nbsp;&nbsp; &nbsp;
This fund provides exposure to large and mid-sized Indian equities.
It has AUM of $5.5 billion and charges a fee of 68 basis points a year. Financials, Computer-Software and Consumer Discretionary are the top three sectors of the fund, with 23.2%, 14.0% and 12.4% allocation, respectively (as of Feb 6, 2018). Housing Development Finance Co, Reliance Industries Ltd and Infosys Ltd are the top three holdings of the fund, with 9.1%, 7.8% and 6.5% allocation, respectively (as of Feb 6, 2018). The fund has returned 22.1% in a year. INDA has a Zacks ETF Rank #1 (Strong Buy), with a Medium risk outlook.
WisdomTree India Earnings Fund EPI
This fund provides exposure to Indian equities in multiple capitalization segments.
It has AUM of $1.7 billion and charges a fee of 84 basis points a year. Financials, Energy and Information Technology are the top three sectors of the fund, with 23.2%, 18.9% and 18.0% allocation, respectively (as of Feb 7, 2018). Reliance Industries Ltd, Infosys Ltd and Housing Development Finance Co are the top three holdings of the fund, with 8.8%, 7.9% and 6.1% allocation, respectively (as of Feb 7, 2018). The fund has returned 24.6% in a year. EPI has a Zacks ETF Rank #1, with a Medium risk outlook.
iShares India 50 ETF INDY
This fund provides exposure to large-cap Indian equities.
It has AUM of $1.2 billion and charges a fee of 93 basis points a year. Banks, Computer-Software and Refineries/Marketing are the top three sectors of the fund, with 26.7%, 11.3% and 10.2% allocation, respectively (as of Feb 6, 2018). Reliance Industries Ltd, Housing Development Finance Co and ITC Ltd are the top three holdings of the fund, with 7.6%, 7.0% and 5.8% allocation, respectively (as of Feb 6, 2018). The fund has returned 22.8% in a year. INDY has a Zacks ETF Rank #1, with a Medium risk outlook.
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India ETFs In Focus As Central Bank Holds Interest Rates

India&#39;s manufacturing sector ended 2017 on a strong note. Manufacturing activity in India touched a five-year high in December 2017, owing to a surge in new orders and production.
	Inside the Headlines
	The Nikkei India Manufacturing Purchasing Managers&#39; Index (PMI) increased to 54.7 in December compared with 52.6 in November. This reflects growth in all three monitored categories &mdash; consumer, intermediate and investment. A reading above 50 indicates expansion.
	Coming to the factors driving growth in the sector, new orders index, which acts a proxy for domestic demand, hit a record high. The new orders sub-index increased to <a href="http://www.business-standard.com/article/economy-policy/india-s-manufacturing-pmi-hits-5-year-high-in-december-118010200171_1.html">56.8</a> in December, the highest since October 2016. Moreover, <a href="https://www.markiteconomics.com/Survey/PressRelease.mvc/bf2c995af5054ee4a5e110f0aa745237">output</a> surged to the highest level since December 2012, the survey revealed.
&quot;India&#39;s goods-producing economy advanced on its recovery path, with operating conditions improving at the strongest pace since December 2012,&quot; said Aashna Dodhia, an <a href="http://www.business-standard.com/article/economy-policy/india-s-manufacturing-pmi-hits-5-year-high-in-december-118010200171_1.html">economist</a> at IHS Markit.
Economic Scenario
	Prime minister Narendra Modi secured key election wins in two states, Gujarat and Himachal Pradesh, on Dec 18, 2017.&nbsp; This has led to an increase in optimism about the health of the economy. Moreover, the recent victories are a positive for the ruling party, as it has given a boost to their confidence ahead of the re-election bid in the 2019 primary elections.
Coming to the economic data points, India&#39;s GDP grew 6.3% year over year in the July-September quarter of 2017 compared with a three-year low of 5.7% in the previous quarter (read: <a href="https://www.zacks.com/stock/news/284898/india-etfs-in-focus-as-gdp-rebounds">India ETFs in Focus as GDP Rebounds</a>).
From a monetary policy perspective, the Reserve Bank of India (RBI) kept the interest rate unchanged at 6% in its December monetary policy meeting, owing to fears of rising inflation. On a year-over-year basis, retail inflation increased to 4.88% in November compared with 3.58% in October, breaching India&#39;s central bank&#39;s 4% target. However, analysts are expecting the RBI to maintain a neutral stance for the rest of this fiscal.
Coming to the price front, although the Indian economy seems to be rebounding from the setbacks faced by demonetization and GST, cost pressures persist. &quot;On the price front, July&#39;s Goods and Services Tax continued to lead to greater raw material costs, with input cost inflation accelerating to the sharpest since April,&quot; said Dodhia.
Moving on to the market moving factors, investors will be closely eyeing next quarter&#39;s earnings and the budget in early 2018.
Let us now discuss a few ETFs focused on providing exposure to the emerging market nation (see <a href="https://www.zacks.com/funds/etfs/etf-categories/Asia-Pacific-(Emerging)-ETFs-54">all Asia-Pacific Emerging ETFs here</a>).
iShares MSCI India ETF INDA&nbsp;&nbsp; &nbsp;
This fund provides exposure to large and mid-sized Indian equities.
It has AUM of $5.5 billion and charges a fee of 68 basis points a year. Financials, Consumer Discretionary and Computer-Software are the top three sectors of the fund, with 22.0%, 13.0% and 12.9% allocation, respectively (as of Dec 29, 2017). Housing Development Finance Co, Reliance Industries Ltd and Infosys Ltd are the top three holdings of the fund, with 8.5%, 7.9% and 6.0% allocation, respectively (as of Dec 29, 2017). The fund has returned 36.3% in a year. INDA has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.
WisdomTree India Earnings Fund EPI
This fund provides exposure to Indian equities in multiple capitalization segments.
It has AUM of $1.8 billion and charges a fee of 84 basis points a year. Financials, Energy and Information Technology are the top three sectors of the fund, with 22.9%, 18.8% and 16.6% allocation, respectively (as of Jan 2, 2018). Reliance Industries Ltd, Infosys Ltd and Housing Development Finance Co are the top three holdings of the fund, with 8.9%, 7.3% and 5.8% allocation, respectively (as of Jan 2, 2017). The fund has returned 40.1% in a year. EPI has a Zacks ETF Rank #1 with a Medium risk outlook.
iShares India 50 ETF INDY
This fund provides exposure to large-cap Indian equities.
It has AUM of $1.2 billion and charges a fee of 93 basis points a year. Banks, Computer-Software and Refineries/Marketing are the top three sectors of the fund, with 26.3%, 10.6% and 10.5% allocation, respectively (as of Dec 29, 2017). Reliance Industries Ltd, Housing Development Finance Co and ITC Ltd are the top three holdings of the fund, with 7.8%, 6.7% and 5.5% allocation, respectively (as of Dec 29, 2017). The fund has returned 36.3% in a year. INDY has a Zacks ETF Rank #1 with a Medium risk outlook.
&nbsp;
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Looking For India Exposure? Try These ETFs

After a great 2017 (for stocks), investors will now be mulling over what&#39;s in store for this year. Chances are high that optimism will be quelled a bit. Trump bump is largely baked in now and the Fed is less likely to cause much upheaval this year. The global economy including the United States has picked up momentum.
Against this backdrop, we have made some ETF predictions for 2018.
Stocks to be Bullish Overall
The year can be attributed to stocks. The first and foremost reason for this is a pickup in corporate earnings. Along with earnings improvement, stabilization in the oil patch after a prolonged rout and a Trump-induced fiscal boost along with lower taxes should augur well for stocks this year.
Still, with markets appearing overvalued by some measure, cautious investors with a long-term notion can opt for value ETFs over growth. Cambria Value and Momentum ETF VAMO and PowerShares S&amp;P 500 Value With Momentum SPVM could be a good picks in this regard.
Recurrence of Success in U.S. Large-Caps
Moderate dollar strength and upbeat global economy will put large-cap stocks in a sweet spot again in 2018. Investors&#39; fondness toward large-caps can be verified from solid asset gains by new funds like Schwab 1000 Index ETF SCHK (the owner of $202 million making a debut in October) and IQ Chaikin U.S. Large Cap ETF CLRG (which amassed about $46.8 million in assets entering the market only in December).
Commodity ETFs to Stay Strong
A pickup in global growth with every major economy witnessing growth in almost a decade led to bullishness in the commodity space lately (read<a href="https://www.zacks.com/stock/news/285846/follow-goldman-to-invest-in-commodity-etfs-for-2018">: Follow Goldman to Invest in Commodity ETFs for 2018</a>).
Goldman Sachs expects commodities to rise almost 10% in 2018, against its previous forecast of 4% returns. Additionally, the tightening monetary policy in the United States will support the rally as commodities perform well during periods of rising interest rates (read:&nbsp;<a href="https://www.zacks.com/stock/news/285700/etfs-to-gainlose-if-fed-turns-hawkish-for-2018">ETFs to Gain/Lose if Fed Turns Hawkish for 2018</a>).
Along with Goldman, we too expect copper to turn around in 2018. Owing to the Chinese government&#39;s crackdown on pollution, state run Jiangxi Copper was asked to cut production. China is the largest consumer of copper. So, such a move matters a lot in copper investing (read: <a href="https://www.zacks.com/stock/news/287278/copper-etfs-in-focus-on-rising-demand">Copper ETFs in Focus on Rising Demand</a>).
Euro Will Likely Repeat 2017&#39;s Success
The year 2017 can easily be credited to euro in the currency ETF world. CurrencyShares Euro ETF FXE gained about 14.5% in 2017. Investors are betting on a likely strengthening in the single currency in 2018 after a great 2017, &quot;its&nbsp;<a href="https://finance.yahoo.com/news/gold-hovers-below-three-week-high-amid-firm-012303341--finance.html">best year</a>&nbsp;versus the greenback since 2003.&quot;
Goldman Sachs is also bullish on euro. After all, in a historic meeting in October, the ECB announced that it would extend its asset-purchase program through September 2018 at a reduced rate.The meeting marked the ECB&#39;s first withdrawal of stimulus. The year 2018 could also mark the start of rate hike by the ECB. If this happens, euro ETFs will soar (read: <a href="https://www.zacks.com/stock/news/287392/after-a-stellar-2017-will-euro-etfs-beat-greenback-in-2018">After a Stellar 2017, Will Euro ETFs Beat Greenback in 2018?</a>).
Bitcoin ETFs Have High Chance of Hitting Market
The year 2017 was all about bitcoin&#39;s momentous journey. The investing world is now in two minds. One group thinks that the cryptocurrency will keep on crossing milestones in 2018 as well and another thinks the asset will finally crash (read: <a href="https://www.zacks.com/stock/news/286283/bitcoin-etfs-what-lies-ahead-in-2018">Bitcoin ETFs: What Lies Ahead in 2018?</a>).
The first futures contract on Chicago Board Options Exchange&nbsp;is already launched on Dec 10 and many issuers have filed products, either futures based or on physical asset. We expect, at least an ETF will see the day of the light, though at the cost of more regulations.
International Bond ETFs May See decent Capital Gains
The Fed has currently forecast three rate hikes in 2018. However, there are several international bond ETFs that offered great returns during 2017 and may do so this year too. Since most of the developed economies are still practicing a low interest rate policy, international bonds got a chance to perform well.
iShares International High Yield Bond ETF HYXU, PowerShares International Corporate Bond Portfolio PICB and SPDR Bloomberg Barclays International Corporate Bond ETF IBND are some of the products that are poised for gains (read: <a href="https://www.zacks.com/stock/news/287276/5-best-bond-etfs-of-2017">5 Best Bond ETFs of 2017</a>).
India, China to Prevail
India economy is back on track as it has emerged from the short-term adverse impact of the goods and services tax and remaining after-effects of demonetization. On the other hand, the largest economy of the developing nation, China, is trying to maintain a 6.5% growth rate.
Though this high standard doesn&#39;t give the administration much opportunities for &quot;structural reforms&quot;, Chinese policymakers indicated at a transition to an agenda of checking pollution and financial risks over economic growth at any cost. Overall, India and China ETFs like iShares India 50 ETF INDY and WisdomTree China Ex-State-Owned Enterprises Fund CXSE are set to gain.
Be Bullish on Brent 
Oil prices logged their most <a href="https://www.reuters.com/article/us-global-oil/oil-posts-strongest-year-opening-since-2014-iran-unrest-pushes-up-crude-idUSKBN1ER024">solid opening</a> to a year since 2014, thanks to geopolitical crisis in Iran and ongoing output cuts led by OPEC and Russia. Higher global growth and declining inventories, should support Brent crude in 2018 (despite steady U.S. crude output). United States Brent Oil BNO may thus scale higher after gaining 17.6% in the last one year (as of Dec 29, 2017).
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Broad U.S. Equity ETFs

CLRG

CXSE

SCHK

VAMO

8 ETF Predictions For 2018

With the MSCI Emerging Markets Index up 33.4 percent year-to-date, it&#39;s not surprising that some investors are wondering if they have missed the emerging markets party. Further stoking that debate is the emerging markets benchmark&#39;s 2016 gain of about 11 percent, meaning the index is approaching a two-year gain of almost 50 percent.
The good news is that fundamental factors bode well for developing world equities and the corresponding ETFs, such as the fast-growing iShares Core MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/iemg#NYSE">IEMG</a>). China, the largest developing economy, looms large. China is by far IEMG&#39;s largest geographic exposure at 28.5 percent.
&ldquo;The underlying fundamentals for EM equities are improving after five years of declining profitability and weak earnings growth,&rdquo; said BlackRock <a href="https://www.blackrockblog.com/2017/11/10/em-equity-revival/?utm_source=blog&amp;utm_medium=hero&amp;utm_campaign=hero">in a recent note</a>. &ldquo;Much attention goes to China, but we see opportunities well beyond this EM powerhouse.&rdquo;&nbsp;
<h3>
	Going Beyond China</h3>
This year, some of the more volatile emerging markets have been key contributors of developing world equity market returns. For example, the iShares MSCI Brazil Capped ETF (NYSE: <a class="ticker" href="/stock/ewz#NYSE">EWZ</a>) is up more than 18 percent year-to-date while the iShares India 50 ETF (NASDAQ: <a class="ticker"href="/stock/indy#NASDAQ">INDY</a>) is higher by 30 percent. Politics are helping the case for stocks in both Brazil and India, historically two of the most volatile emerging markets.
&ldquo;In Brazil, labor reform passed earlier this year gives companies more flexibility in managing their workforce, potentially leading to lower labor expenses,&rdquo; said BlackRock. &ldquo;Elsewhere, India has seen some of the most substantial reform progress among EMs, kicked off by Prime Minister Narendra Modi&rsquo;s election in 2014. Company margins in India have been challenged as the government has undertaken reforms, but they are slowly showing signs of improvement amid lower expenses and inflation.&rdquo;
IEMG, which tracks the MSCI Emerging Markets Investable Market Index, allocates almost 16 percent of its combined weight to Indian and Brazilian stocks. The two countries are IEMG&#39;s fourth- and fifth-largest geographic exposures, respectively.
<h3>
	Central Banks Helping</h3>
While the Federal Reserve is<a href="https://www.benzinga.com/news/17/11/10272186/is-december-rate-hike-on-feds-agenda-fed-leaves-door-open"> on track to raise rates </a>next month &mdash; marking the third such move this year &mdash; and other developed market central banks are doing the same, emerging markets central banks are going a different direction. As just two examples, Brazil and India have been voracious cutters of borrowing costs.
&ldquo;We calculate seven major EM central banks, including Brazil&rsquo;s and India&rsquo;s, collectively delivered more than 1,000 basis points in rate cuts through October of this year,&rdquo; said BlackRock. &ldquo;Mexico was the only major EM central bank to increase rates in 2017. Developed markets (DMs) are heading in the other direction. The key reason for the divergence: EM disinflation.&rdquo;
Indonesia and Russia, which combine for over 5 percent of IEMG&#39;s roster, are also countries that could lower interest rates.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/11/10759183/buybacks-and-dividends-in-one-etf">Plenty Of Rewards In This ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/11/10759150/vanguards-first-new-etf-of-2017-is-a-corporate-bond-fund">A New Cheap Bond ETF</a>

Assessing The Durability Of The Emerging Market Resurgence

Inflation rate in India has touched a record low of 2.2% in May 2017, while it was over 11% four years ago. The inflation rate in April 2017 was 2.99%.
The fall in prices is primarily being attributed to cyclical or temporary issues, including a stronger rupee and reduced domestic demand. Moreover, structural changes by Prime Minister Narendra Modi's government, like better food management, is also being attributed as one of the drivers for this fall in prices. The Indian rupee is up over 5.2% against the U.S. dollar so far this year.
This has led the Reserve Bank of India (RBI) to cut its inflation forecasts. The RBI revised its inflation forecast to the range of 2–3.5% from 4.5% for the first half of the fiscal year ending March. It also revised forecasts to the range of 3.5–4.5% from 5% for the second half. The Wholesale Price Index slowed to 2.17% year over year in May 2017 compared with a rise of 3.85% in April.
Moreover, the country also moved to a new base year in May to calculate its wholesale prices, in order to reduce the volatility associated with it and provide a better picture to the RBI. The calculations will take 2012 as the base year.
India's GDP grew 6.1% in the first quarter of 2017, reflecting a decline from 7% in the previous quarter. This has put pressure on the RBI to cut rates. The RBI, however, left its repo rate, the rate at which the RBI lends to banks, unchanged at 6.25%. However, analysts are predicting a rate cut as early as August (read:<a href="https://www.zacks.com/stock/news/263780/india-keeps-key-rates-unchanged-etfs-in-focus"> India Keeps Key Rates Unchanged: ETFs in Focus</a>).
Let us now discuss a few ETFs focused on providing exposure to the emerging market nation (see <a href="https://www.zacks.com/funds/etfs/etf-categories/Asia-Pacific-(Emerging)-ETFs-54">all Asia-Pacific (Emerging) ETFs here</a>).
iShares MSCI India ETF INDA
This fund provides exposure to large and mid-sized Indian equities.
It has AUM of $5.10 billion and charges a fee of 71 basis points a year. Financials, Computer-Software and Consumer Discretionary are the top three sectors of the fund, with 23.21%, 13.56% and 12.92% allocation, respectively (as of June 16, 2017). Housing Development Finance Co, Reliance Industries Ltd and Infosys Ltd are the top three holdings of the fund, with 9.20%, 6.70% and 6.43% allocation, respectively (as of June 16, 2017). The fund has returned 19.09% in the last one year and 22.27% year to date (as of June 19, 2017). INDA currently has a Zacks ETF Rank 2 (Buy) with a Medium risk outlook (read: <a href="https://www.zacks.com/stock/news/257332/why-india-etfs-are-soaring-in-2017">Why India ETFs are Soaring in 2017</a>).
WisdomTree India Earnings Fund EPI
This fund provides exposure to Indian equities in multiple capitalization segments.
It has AUM of $1.69 billion and charges a fee of 84 basis points a year. Financials, Energy and Information Technology are the top three sectors of the fund, with 25.99%, 20.46% and 15.39% allocation, respectively (as of June 19, 2017). Reliance Industries Ltd, Housing Development Finance Co and Infosys Ltd are the top three holdings of the fund, with 11.01%, 6.45% and 6.43% allocation, respectively (as of June 19, 2017). The fund has returned 26.76% in the last one year and 24.75% year to date (as of June 19, 2017). EPI currently has a Zacks ETF Rank 2 with a Medium risk outlook (read: <a href="https://www.zacks.com/stock/news/261110/india-etfs-more-run-ahead">India ETFs: More Run Ahead?</a>).
iShares India 50 ETF INDY
This fund provides exposure to large-cap Indian equities.
It has AUM of $993.06 million and charges a fee of 94 basis points a year. Banks, Computer-Software and Refineries/Marketing are the top three sectors of the fund, with 26.39%, 10.98% and 8.50% allocation, respectively (as of June 16, 2017). Housing Development Finance Co, ITC Ltd and Reliance Industries Ltd are the top three holdings of the fund, with 7.26%, 7.24% and 6.42% allocation, respectively (as of June 16, 2017). The fund has returned 23.29% in the last one year and 25.64% year to date (as of June 19, 2017). INDY currently has a Zacks ETF Rank 2 with a Medium risk outlook.
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India Inflation at Record Low: ETFs in Focus

The Reserve Bank of India (RBI) on Wednesday, June 7, 2017 left its repo rate, the rate at which the RBI lends to banks, unchanged at 6.25%. It also kept its reverse repo rate intact at 6%, the rate at which it borrows from the banks. The last decline in key rates was in October 2016, when the repo rate was reduced by 25 basis points. The RBI however reduced its Statutory Liquidity Reserve (SLR) requirement, rate of deposits that banks have to park in government bonds, by 50 basis points to 20%.
While the RBI delivered a less-hawkish tone in its Monetary Policy Committee (NYSE: <a class="ticker" href="/stock/mpc#NYSE">MPC</a>) meeting, it is still adopting a neutral stance on rates, to check if the current scenario of low inflation persists. Moreover, the primary focus will be on the new Goods and Services Tax (AMEX:GST) policy which will be implemented by the government from July 1, 2017. The government has been pressurizing them to cut rates in order to induce private spending to tackle the slower-than-expected economic growth.
India's GDP grew 6.1% in the first quarter of 2017, a decline from 7% in the previous quarter. The fall is primarily being attributed to declining consumer spending after the Prime Minister dealt a huge blow to the country's currency by rendering high denomination notes useless in November 2016. The demonetization program removed 86% of the country's currency in circulation. The RBI Deputy Governor B.P. Kanungo said that <a href="https://rbi.org.in/Scripts/bs_viewcontent.aspx?Id=3365">approximately 82.6%</a> of the economy has been re-monetized.
An indicator of economic growth, the Gross Value Added (NYSE: <a class="ticker" href="/stock/gva#NYSE">GVA</a>) forecast was reduced to 7.3% for the year ending March 2018, down 0.1% from its previous forecast of 7.4%.
Let us now discuss a few ETFs focused on providing exposure to the emerging market nation (see all <a href="https://www.zacks.com/funds/etfs/etf-categories/Asia-Pacific-(Emerging)-ETFs-54">Asia-Pacific (Emerging) ETFs here</a>).
iShares MSCI India ETF INDA
This fund provides exposure to large and mid-sized Indian equities.
It has AUM of $5.12 billion and charges a fee of 71 basis points a year. Financials, Computer-Software, and Consumer Discretionary are the top three sectors of the fund, with 23.15, 13.94% and 12.92% allocation, respectively (as of June 8, 2017). Housing Development Finance Co, Infosys Ltd, and Reliance Industries Ltd are the top three holdings of the fund, with 9.10%, 6.49% and 6.39% allocation, respectively (as of June 8, 2017). The fund has returned 20.32% in the last one year and 22.90% year to date (as of June 8, 2017). INDA currently has a Zacks ETF Rank 2 (Buy) with a Medium risk outlook (read: <a href="https://www.zacks.com/stock/news/257332/why-india-etfs-are-soaring-in-2017">Why India ETFs are Soaring in 2017</a>).
WisdomTree India Earnings Fund EPI
This fund provides exposure to Indian equities in multiple capitalization segments.
It has AUM of $1.66 billion and charges a fee of 84 basis points a year. Financials, Energy, and Information Technology are the top three sectors of the fund, with 25.76%, 20.15% and 16.59% allocation, respectively (as of June 8, 2017). Reliance Industries Ltd, Infosys Ltd, and Housing Development Finance Co are the top three holdings of the fund, with 10.41%, 6.62% and 6.37% allocation, respectively (as of June 8, 2017). The fund has returned 28.19% in the last one year and 25.25% year to date (as of June 8, 2017). EPI currently has a Zacks ETF Rank 2 with a Medium risk outlook (read: <a href="https://www.zacks.com/stock/news/261110/india-etfs-more-run-ahead">India ETFs: More Run Ahead?</a>).
iShares India 50 ETF INDY
This fund provides exposure to large-cap Indian equities.
It has AUM of $908.45 million and charges a fee of 94 basis points a year. Banks, Computer-Software, and Refineries/Marketing are the top three sectors of the fund, with 26.31%, 11.46% and 8.33% allocation, respectively (as of June 7, 2017). ITC Ltd, Housing Development Finance Co, and Reliance Industries Ltd are the top three holdings of the fund, with 7.30%, 7.02% and 6.14% allocation, respectively (as of June 7, 2017). The fund has returned 23.36% in the last one year and 25.75% year to date (as of June 8, 2017). INDY currently has a Zacks ETF Rank 2 with a Medium risk outlook.
Let us now compare the performance of these ETFs to a broad emerging market ETF, EEM.
iShares MSCI Emerging Markets ETF EEM
This fund focuses on providing a diversified exposure to emerging markets.
It has AUM of $32.02 billion and charges a fee of 72 basis points a year. The fund has 8.8% exposure to India and over 55% is allocated to China, South Korea, and Taiwan (as of June 8, 2017). Information Technology, Financials, and Consumer Discretionary are the top three sectors of the fund, with 25.02%, 23.34% and 10.77% allocation, respectively (as of June 8, 2017). Tencent Holdings Ltd, Samsung Electronics Ltd, and Taiwan Semiconductor Manufacturing are the top three holdings of the fund, with 4.21%, 4.18% and 3.68% allocation, respectively (as of June 8, 2017). The fund has returned 27.48% in the last one year and 19.77% year to date (as of June 8, 2017). EEM currently has a Zacks ETF Rank 3 (Hold) with a Medium risk outlook.
Bottom Line
Despite these headwinds, the fundamentals of the Indian economy on a standalone basis seem to be appealing. Comparing the year-to-date performance of the India ETFs and the broad emerging market ETF, we can see that Indian equities have outperformed their other emerging market counterparts so far this year.
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 Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. <a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=BENZ_CONTENT_ZER_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;cid=CS-BENZ-FT-263780" target="_blank">Click to get this free report</a>   <a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=EEM&amp;split=1&amp;cid=CS-BENZ-FT-263780">ISHARS-EMG MKT (ETF:EEM): ETF Research Reports</a>   <a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=INDY&amp;split=1&amp;cid=CS-BENZ-FT-263780">ISHARS-SP INDIA (NASDAQ: <a class="ticker" href="/stock/indy#NASDAQ">INDY</a>): ETF Research Reports</a>   <a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=INDA&amp;split=1&amp;cid=CS-BENZ-FT-263780">ISHARS-M INDIA (ETF:INDA): ETF Research Reports</a>   <a href="http://www.zacks.com/registration/pfp/?ALERT=ETF225&amp;adid=BENZ_CONTENT_ETF_ARTCAT_ETF_NEWS_AND_COMMENTARY&amp;d_alert=rd_final_rank&amp;t=EPI&amp;split=1&amp;cid=CS-BENZ-FT-263780">WISDMTR-IN EARN (ETF:EPI): ETF Research Reports</a>   <a href="http://www.zacks.com/stock/news/263780/india-keeps-key-rates-unchanged-etfs-in-focus?cid=CS-BENZ-FT-263780">To read this article on Zacks.com click here.</a>   <a href="http://www.zacks.com/">Zacks Investment Research</a>   <a href="http://www.zacks.com/registration/pfp/?ALERT=RPT_7BST_LP194&amp;ADID=ZACKS_PFP_7BEST_ETF">Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report</a>

India Keeps Key Rates Unchanged: ETFs in Focus

<a href="http://www.dnaindia.com/analysis/column-this-is-a-new-indian-sunrise-2273153">Demonetization</a>. That is what the Indian government is calling the almost complete, overnight elimination of cash in one of the world&rsquo;s top 10 economies and most populated countries.
<h3>But Why?</h3>
On November 8, Prime Minister Narendra Modi surprised a huge part India&rsquo;s population when he announced that roughly 86 percent of the total rupee notes in circulation would suddenly become void and would need to be exchanged by new ones issued by the Reserve Bank of India. Banning the <a href="http://timesofindia.indiatimes.com/pm-modis-address-to-the-nation/liveblog/55315325.cms">old 500 and 1,000 rupee bills </a>will be a large step in combating tax evasion and corruption, Modi explicated, refuting reports that claimed the move was about financing terror or plain-old bribery.
While some analysts are praising the decision, people in India are quite angry &mdash; but remain peaceful &mdash; as cash shortages increase and lines to exchange the old currency get longer and longer. Take into account that India&rsquo;s economy relies heavily on cash, as 90 percent of transactions are completed this way. Against this backdrop, credit or debit are not options for most people.
<h3>Cash Economics</h3>
Nonetheless, this is exactly why Modi decided to move forward with this plan. A cash economy means that only about <a href="http://www.bbc.co.uk/news/world-asia-india-36186116">1 percent of the population</a> is paying income taxes.
&quot;The poor are sleeping peacefully, while the rich are running around trying to buy sleeping pills,&rdquo; Modi said in a speech he delivered on Monday.
<h3>ETF Reactions</h3>
Top India ETFs like the Ishares MSCI India ETF (BATS: INDA), the WisdomTree India Earnings Fund (ETF) (NYSE: <a class="ticker" href="/stock/epi#NYSE">EPI</a>), the iShares S&amp;P India Nifty 50 Index Fund (NASDAQ: <a class="ticker" href="/stock/indy#NASDAQ">INDY</a>) and the PowerShares India Portfolio (ETF) (NYSE: <a class="ticker" href="/stock/pin#NYSE">PIN</a>) were little changed on Monday trading, posting gains or losses of no more than 0.3 percent.

Forex

Global

Economics

Demonetization: Why India Banned 86% Of Its Rupee Notes With No Prior Notice

Major India exchange-traded funds are still lagging the MSCI Emerging Markets Index on a year-to-date basis, but some market observers believe stocks in Asia&#39;s third-largest economy have the ability to play catch-up with a run that could extend into next year.
ETFs such as the iShares S&amp;P India Nifty 50 Index Fund (NASDAQ: <a class="ticker" href="/stock/indy#NASDAQ">INDY</a>) and the WisdomTree India Earnings Fund (NYSE: <a class="ticker" href="/stock/epi#NYSE">EPI</a>) should reward investors if Indian stocks can string together a run of out-performance over broader emerging markets equity benchmarks.
<h3>A Question Of Cost</h3>
EPI and INDY may appear expensive relative to the MSCI Emerging Markets Index, but Indian stocks currently trade at multiples that are in line with historical averages.
Valuation likely is not investors&#39; primary concern with Indian stocks. Familiar issues such as high inflation and slow-moving government reforms are the considerations for foreign investors when mulling stakes in Indian stocks or ETFs.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/09/8455486/tax-reform-could-boost-india-etfs">Tax Reform Could Boost India ETFs</a></bzrelatedlink>
&ldquo;India&#39;s benchmark BSE Sensex index of leading shares will rise a further 5 percent by the end of this year, according to analysts polled by Reuters, driven by a stable growth outlook and on expectations the government will pass more economic reforms,&rdquo; according to <a href="http://economictimes.indiatimes.com/markets/stocks/news/indian-stocks-to-march-higher-scale-record-peak-in-2017/articleshow/53173060.cms">Reuters</a>.
<h3>The Role Of Financials</h3>
Often one of the largest sector allocations in a plethora of diversified and single-country emerging markets ETFs, financial services names play a pivotal role in determining the fortunes of these funds. That could prove to be good news for EPI. Non-performing assets (NPAs) have been an issue for Indian banks, one that is being worked through now.
EPI&#39;s underlying index holds the most profitable Indian companies that are accessible to foreign investors. Profitability is the key there at a time when emerging markets earnings growth <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/10/5906763/why-india-etfs-why-now">is, at best, anemic</a>. 
&ldquo;Expectations for more policy easing from the Reserve Bank of India could also boost Indian stocks, analysts said. The RBI cut interest rates five times in the 18 months to April as inflation eased to within the central bank&#39;s target,&rdquo; added Reuters.
However, domestic consumption must increase as external demand is still slack. Additionally, a case can be made that, at least at the ETF level, investors are under-allocated to Indian stocks. For example, EPI and INDY have lost over $430 million in combined assets this year while the comparable Brazil ETF has added over $680 million in new assets. 
EPI is up 11.7 percent year-to-date, an advantage of nearly 200 basis points over the comparable China ETF.
<a href="https://pro.benzinga.com/?utm_source=Benzinga&amp;utm_medium=Benzinga%20Top%20of%20Article&amp;am%22%3">Full ratings data available on Benzinga Pro.</a>
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More Upside Seen For India ETFs

In a recent Seeking Alpha post, Fernando Posadas shared some insights about the oil output in Latin America, where major producers have witnessed declines of almost 400K bpd year-over-year. Moreover, this figure still reflects the strong influence of Brazil, which has helped maintain output levels.

	As of June, Argentina had seen a 6 percent year-over-year decline in production; Colombia, a 12 percent tumble; Mexico, a 3 percent slip; and Venezuela, an 11 percent plummet. Production across the sub-continent only grew in Brazil (6 percent) and Ecuador (2 percent).

	&ldquo;Taking rig count as a forward-looking indicator, we can say that Latin America will stop declines in the best-case scenario, but in the medium term,&rdquo; the author concluded.
<h3>
	South Africa Is King Again</h3>

	South Africa has managed to regain its position as Africa&rsquo;s largest economy, following a two-year Nigerian tenure. According to IMF data, the swap can be mainly attributed to currency issues: while the South African rand has gained almost 20 percent over the past six months, the Nigerian naira has lost more than 38 percent &ndash; most of it during June&rsquo;s devaluation.

	Per IMF data, South Africa&#39;s economy is currently worth roughly $301 billion, while Nigeria&rsquo;s economy reaches $296 billion.

	&ldquo;But look behind the league table and the light-hearted jostling about who has the largest economy in Africa and things, economically speaking, are a little bleaker. Both economies contracted in the first quarter. Another contraction and they&#39;ll both be in recession,&rdquo; <a href="http://www.bbc.com/news/world-africa-37045276">BBC</a> said.
<h3>
	Why Indian Equity Markets Beat The Chinese </h3>

	Indian equity markets have performed a lot better than Chinese markets over the past few years. For instance, over the past year, the iShares FTSE/Xinhua China 25 Index (ETF) (NYSE: <a class="ticker" href="/stock/fxi#NYSE">FXI</a>) has lost 8.6 percent, while the iShares S&amp;P India Nifty 50 Index Fund (NASDAQ: <a class="ticker" href="/stock/indy#NASDAQ">INDY</a>) slipped just 2.74 percent. Over the last five years, the former fund tumbled 4.44 percent, while the latter gained 13.36 percent.

	In a recent <a href="http://www.forbes.com/sites/panosmourdoukoutas/2016/08/11/why-indias-markets-beat-chinas/#7ab7e5061c05">Forbes</a> article, Panos Mourdoukoutas shared some of the reasons behind India&rsquo;s outperformance.

	&ldquo;First, India&rsquo;s market is opened to foreign capital. China isn&rsquo;t,&rdquo; he said. &ldquo;Indian stocks move up and down more closely in sync with the global emerging market average than the stocks of most other countries do &ndash; because its emerging markets are deep and diverse.&rdquo;

	Other reasons include the pace of financial reform (steadier in India), the diversity of profit-oriented companies in the Indian equity market, and the accelerating Indian growth &ndash; versus China&rsquo;s decelerating pace.

SPDR S&P Emerging Middle East & Africa ETF

PowerShares Emerging Markets Sovereign  Portfolio

SCHE

Emerging Markets Right Now: Latin America's Oil Surprise, Africa's New Main Economy & India's Outperformance

India exchange-traded funds, such as the iShares MSCI India ETF (BATS: INDA) and the iShares S&amp;P India Nifty 50 Index Fund (NASDAQ: <a class="ticker" href="/stock/indy#NASDAQ">INDY</a>), have recently been outperforming broader emerging markets benchmarks, a trend that could continue as India increases its tax reform efforts.
Earlier this year, INDA, INDY and rival India ETFs disappointed, even amid low oil prices. As a net importer of oil, India&#39;s economy was expected to benefit from lower crude prices. That trend could be starting to materialize. Although some of the well-known India ETFs still trail the MSCI Emerging Markets Index on a year-to-date basis, over the past 90 days, India ETFs are winning.
<h3>Internal Affairs</h3>
&ldquo;In an historic vote of 203&ndash;0, India&#39;s upper house, the Rajya Sabha, passed the 122nd Amendment to the constitution, paving the way for the introduction of a goods and services tax (GST). To date, this represents one of the flagship reforms of the Modi era,&rdquo; <a href="https://www.ishares.com/us/products/239758/INDY?referrer=tickerSearch">according to a note</a> from iShares Head of U.S. Investment Strategy Heidi Richardson.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/07/8235299/india-etfs-on-the-comeback-trail">India ETFs On The Comeback Trail</a></bzrelatedlink>
INDA and INDY sport price-to-earnings ratio north of 20, which makes India appear expensive relative to the MSCI Emerging Markets Index, but Indian stocks currently trade at multiples that are in line with historical averages.
Valuation likely is not investors&#39; primary concern with Indian stocks. Familiar issues such as high inflation and slow-moving government reforms are the considerations for foreign investors when mulling stakes in Indian stocks or ETFs.
&ldquo;If the bill passes, a newly-formed GST council will then shepherd the process, which will include overhauling and replacing a complicated existing tax system and the practical implementation of how various exemptions and state-level differences will work in practice. The GST council, chaired by the finance minister, will set the final tax rate. It will likely be at least a year before the necessary legislative processes are in place to enact the tax,&rdquo; added Richardson.
<h3>INDY And INDA On The Rise?</h3>
INDY allocates a combined 37 percent of its weight to banks and computer software makers. Automotive, tobacco and healthcare stocks combine for 22 percent of the ETF&#39;s weight.
Efforts to reform India&#39;s tax system are seen by market observers as a long time coming and a positive for boosting GDP and potentially foreign investment. 
&ldquo;Over the long-term, the establishment of a GST and the accompanying tax code reforms are likely to be a benefit to the Rupee, local rates, and the nation&#39;s GDP and equity markets. In the short term, there may be a temporary uptick in inflation and/or potential short-term headwinds to growth as the new code is implemented,&rdquo; said Richardson.
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Commodities

Another Plus For India ETFs

Shares in Asia slipped Monday, tracking a fall in US equities, as markets grappled with ratcheting tensions after Iran's unprecedented attack on Israel over the weekend.

Sensex Today Tanks 700 Points; Nifty Below 22,350

After opening on a negative note, Indian share markets slipped further as the session progressed and ended the day weak.

Sensex Today Tanks 845 Points; 5 Reasons Why Indian Share Market is Falling

Indian share markets are trading lower with the Sensex down by 320 points and Nifty lower 82 points.

Sensex Today Trades Lower; Nifty Below 22,150

Sensex Today Ends 456 Points Lower

Emerging Markets - A Changed Asset Class?

Asian share markets are mixed today after US shares extended their losing streak to the longest since January 2024.

Sensex Today Trades Higher; Just Dial Soars 10%

Benchmark indices swung between gains and losses as dimming hopes of US rate cuts and geopolitical tensions added to the volatility.

Sensex Today Falls 1,000 Points From Day's High, Slides For 4th Day

Indian share markets are trading lower with the Sensex down by 500 points and Nifty lower by 150 points.

Sensex Today Tanks 500 Points Amid Iran-Israel Tensions

Looking Back At Equity Factors In Q1 2024 With WisdomTree

After opening the day deep in red, Indian share markets reversed the trend as the session progressed and ended on a firm footing.