Friday, December 14, 2012

Four India-focussed equity ETFs

In a recent article at the site, India’s stock market was mentioned as ‘notoriously volatile’ and meant for investors with ‘very high risk tolerance’.

However, approval of FDI in multi-brand retail by both houses of parliament and steps towards other important financial reforms appear to have changed some of the negative perceptions.

The following comments reflect the change in mood: “Despite being up 20%-plus on a year-to-date basis, the MSCI India Index is currently trading slightly below its average five-year trailing 12-month P/E ratio. Looking forward, we think there are a number of catalysts that may drive the market higher in the short and medium term.”

The article recommends four India-focussed equity ETFs for investors seeking an exposure to Indian equities. Here are the 6 months closing charts of the four funds:

WisdomTree India Earnings (EPI)


EPI is struggling to remain in a bull market, following the ‘golden cross’ of the 50 day EMA above the 200 day EMA in Oct ‘12.

Expense ratio: 0.83%; TTM P/E: 11.

PowerShares India (PIN)


PIN’s ‘golden cross’ has not been a convincing one. The bear phase isn’t quite over yet.

Expense ratio: 0.78%; TTM P/E: 14.

iShares S&P India Nifty 50 Index (INDY)


INDY is back in a bull market.

Expense ratio: 0.89%; TTM P/E: 16.

iShares MSCI India Index (INDA)


MSCI is back in a bull market.

Expense ratio: 0.65%; TTM P/E: 15.

Other investment options suggested in the article are: an open-end fund - Mathews India (MINDX) and two closed-end funds – India Fund (IFN) and Morgan Stanley India (IIF).

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