iShares MSCI India ETF (INDA-US)

India is a story that is a little more popular. Everybody can recite the positives such as young demographics, the government led by Modi or the monetary policies. The real thing you want to see in emerging markets is the “triple merit scenario”; falling interest rates, rising currencies and a rising stock market. The way to do that is to get inflation down, and inflation has been a huge problem in emerging markets for a while. India has stuck to the program.

India? The Indian central banker has just resigned. He was a great central banker and has done a lot of good things for the country. However, he doesn’t think this resignation will impede the plans of the Mohdi government. It would be hard to find a better emerging market than India. Everything you see in the West, such as aging demographics, high debt levels or low interest rates, there is the exact opposite in India. This is the ETF that he uses to plays this theme. This is especially a good, long term holding.

An Indian ETF for the long-term? He is looking at ETF’s that have a lot of liquidity and low costs. This one tracks the index of Indian stocks. It has an MER of .68%. If you want exposure to India, this is probably the easiest way. If you just want the large cap players, you might look at the iShares India 50 (INDY-Q). The MER is a little higher at .94%, but it is the 50 largest companies in India.