Opinions
John Hood
iShares India Nifty 50 ETF
INDY-Q
DON'T BUY
Jan 10, 2025
$49.960
Stock price when the opinion was issued
E.T.F.'s
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COMMENT
India Nifty 50 ETF. 25% banks, 25% telecoms. In US$ so would prefer a Cdn such as BMO India Equity Hedged to CAD ETF (ZID-T)A lot of political uncertainty in India and inflation was running very high, of which 20% was food related. That has mitigated a little. India is still growing at about 8% and inflation is around 8%. Not too much near term but buying now, in 3 years you’ll be in one of the best growth markets.
E.T.F.'s
COMMENT
An Indian ETF for the long-term? He is looking at ETF’s that have a lot of liquidity and low costs. If you want the large cap players, you might look at this which has an MER of .94%, and is the 50 largest companies in India. Or you could use IShares MSCI India (INDA-US), which simply tracks the index of Indian stocks. It has an MER of only .68%. If you want exposure to India, this is probably the easiest way.
E.T.F.'s
INDA is a bit more diversified with 70-90 stocks, instead of just the top 50 of INDY. The MERs are fairly pricey around 90 bps or so. The MER for EPI is somewhat smaller, around 30 bps lower.
He's not that familiar with that market or the companies in those ETFs. Modi has made changes there, mainly to the good. But ethnic divisiveness is a serious issue. He's not investing there for his clients at this point.