We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
India’s stock market has been riding on the expectations of a strong win for the Narendra Modi-led alliance in the recently concluded general elections. Exit polls suggest that Modi is set to return for a record third term. The polls project the alliance led by the Bharatiya Janata Party (BJP) to get more than 303 seats in the 543-member lower house and probably secure a two-thirds majority — enough to initiate amendments to the constitution.
In fact, the NSE Nifty 50 Index rallied 3.6% to a record high at the time of writing on optimism, while the S&P BSE 500 Index jumped as much as 3.9%, its biggest intraday gain since February 2021, to an all-time high.
A landslide win would enable Modi’s party to push through policies that are crucial for boosting India’s economy, already among the world’s fastest growing economies. The victory would renew foreign investor enthusiasm for the nation’s $4.7 trillion stock market, which briefly overtook Hong Kong this year as the fourth largest in the world.
India's economic growth accelerated to 8.2% in the fiscal year that ended in March, led by government spending on infrastructure and a boom in real estate, per the latest data.
iShares MSCI India ETF offers exposure to large and mid-cap companies in India by tracking the MSCI India Index and charging 65 bps in fees per year from investors. Holding 147 stocks in its basket, the fund has key exposure in financials, consumer discretionary, information technology and energy.
iShares MSCI India ETF is the largest and the most popular ETF in this space, with AUM of $10.2 billion and an average trading volume of 4.4 million shares a day. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Embrace ETFs to Capture India's Momentum Growth).
WisdomTree India Earnings Fund seeks to provide investors exposure to profitable companies in India’s equity market by tracking the WisdomTree India Earnings Index. It holds 475 securities in its basket, with none accounting for no more than 7.6% of assets. From a sector look, financials, energy, materials, and information technology occupy double-digit exposure each.
WisdomTree India Earnings Fund has AUM of $3.3 billion and charges 85 bps in fees per year. It trades in an average daily volume of 830,000 shares and has a Zacks ETF Rank #3 with a Medium risk outlook.
Franklin FTSE India ETF targets exposure to large- and mid-sized companies in India and follows the FTSE India Capped Index. It holds 229 stocks in its basket, with none accounting for more than 7.4% of assets. FLIN has large exposure to financials at 23.8% share, while consumer discretionary, energy, industrials and information technology receive double-digit exposure each.
Franklin FTSE India ETF has amassed $1.1 billion in its asset base and charges 19 bps in annual fees. It trades in an average daily volume of 197,000 shares. FLIN has a Zacks ETF Rank #2 (Buy)
iShares MSCI India Small-Cap ETF provides exposure to the small-cap segment of the broad India stock market by tracking the MSCI India Small Cap Index. It holds a well-diversified portfolio of 501 stocks, with none accounting for more than 4.7% share. Here, industrials dominates the fund portfolio with one-fourth share while financials, materials, consumer discretionary and healthcare round off the next three spots with double-digit exposure each.
iShares MSCI India Small-Cap ETF has AUM of $906.3 million and trades in an average daily volume of 250,000 shares. It charges 79 bps in annual fees and has a Zacks ETF Rank #3 with a High risk outlook (read: 6 Reasons to Tap India ETFs Now: 4 Low P/E Picks).
iShares India 50 ETF provides exposure to the largest 50 Indian stocks by tracking the Nifty 50 Index. It has a concentration issue in the top three holdings that collectively make up for a 29.2% share, while others account for no more than 5% of the assets. With respect to sectors, financials takes the top spot at 33.9%, closely followed by energy (12.5%) and information technology (12.2%).
iShares India 50 ETF manages assets worth $867.6 million and trades in a good volume of nearly 67,000 million shares a day. It is a high-cost choice in the space, charging 89 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
India ETFs to Soar on Likely Modi Win
India’s stock market has been riding on the expectations of a strong win for the Narendra Modi-led alliance in the recently concluded general elections. Exit polls suggest that Modi is set to return for a record third term. The polls project the alliance led by the Bharatiya Janata Party (BJP) to get more than 303 seats in the 543-member lower house and probably secure a two-thirds majority — enough to initiate amendments to the constitution.
In fact, the NSE Nifty 50 Index rallied 3.6% to a record high at the time of writing on optimism, while the S&P BSE 500 Index jumped as much as 3.9%, its biggest intraday gain since February 2021, to an all-time high.
A landslide win would enable Modi’s party to push through policies that are crucial for boosting India’s economy, already among the world’s fastest growing economies. The victory would renew foreign investor enthusiasm for the nation’s $4.7 trillion stock market, which briefly overtook Hong Kong this year as the fourth largest in the world.
India's economic growth accelerated to 8.2% in the fiscal year that ended in March, led by government spending on infrastructure and a boom in real estate, per the latest data.
As a result, we have highlighted five ETFs that are set to gain amid the optimism (see: all the emerging Asia Pacific ETFs here).
iShares MSCI India ETF (INDA - Free Report)
iShares MSCI India ETF offers exposure to large and mid-cap companies in India by tracking the MSCI India Index and charging 65 bps in fees per year from investors. Holding 147 stocks in its basket, the fund has key exposure in financials, consumer discretionary, information technology and energy.
iShares MSCI India ETF is the largest and the most popular ETF in this space, with AUM of $10.2 billion and an average trading volume of 4.4 million shares a day. It has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook (read: Embrace ETFs to Capture India's Momentum Growth).
WisdomTree India Earnings Fund (EPI - Free Report)
WisdomTree India Earnings Fund seeks to provide investors exposure to profitable companies in India’s equity market by tracking the WisdomTree India Earnings Index. It holds 475 securities in its basket, with none accounting for no more than 7.6% of assets. From a sector look, financials, energy, materials, and information technology occupy double-digit exposure each.
WisdomTree India Earnings Fund has AUM of $3.3 billion and charges 85 bps in fees per year. It trades in an average daily volume of 830,000 shares and has a Zacks ETF Rank #3 with a Medium risk outlook.
Franklin FTSE India ETF (FLIN - Free Report)
Franklin FTSE India ETF targets exposure to large- and mid-sized companies in India and follows the FTSE India Capped Index. It holds 229 stocks in its basket, with none accounting for more than 7.4% of assets. FLIN has large exposure to financials at 23.8% share, while consumer discretionary, energy, industrials and information technology receive double-digit exposure each.
Franklin FTSE India ETF has amassed $1.1 billion in its asset base and charges 19 bps in annual fees. It trades in an average daily volume of 197,000 shares. FLIN has a Zacks ETF Rank #2 (Buy)
iShares MSCI India Small-Cap ETF (SMIN - Free Report)
iShares MSCI India Small-Cap ETF provides exposure to the small-cap segment of the broad India stock market by tracking the MSCI India Small Cap Index. It holds a well-diversified portfolio of 501 stocks, with none accounting for more than 4.7% share. Here, industrials dominates the fund portfolio with one-fourth share while financials, materials, consumer discretionary and healthcare round off the next three spots with double-digit exposure each.
iShares MSCI India Small-Cap ETF has AUM of $906.3 million and trades in an average daily volume of 250,000 shares. It charges 79 bps in annual fees and has a Zacks ETF Rank #3 with a High risk outlook (read: 6 Reasons to Tap India ETFs Now: 4 Low P/E Picks).
iShares India 50 ETF (INDY - Free Report)
iShares India 50 ETF provides exposure to the largest 50 Indian stocks by tracking the Nifty 50 Index. It has a concentration issue in the top three holdings that collectively make up for a 29.2% share, while others account for no more than 5% of the assets. With respect to sectors, financials takes the top spot at 33.9%, closely followed by energy (12.5%) and information technology (12.2%).
iShares India 50 ETF manages assets worth $867.6 million and trades in a good volume of nearly 67,000 million shares a day. It is a high-cost choice in the space, charging 89 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.