Opinions
Larry Berman CFA, CMT, CTA
iShares CNX Nifty India
XID-T
COMMENT
Oct 23, 2017
Stock price when the opinion was issued
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XID vs VEE (India vs. EM) VEE is Asia-ex Japan. It contains some major India stocks, plus Korea and China. With XID, you're making a country call. Do you know something about India that the world does not? He is not a country allocator. Take a look at Forstrong ETFs (https://www.forstrong.com/) who actively manage and you need that if you're so country-specific.
VEE vs. XID VEE covers EM. XID: India has a young working population who speak English. India fits well into global commerce. If they build their infrastructure, India will do well. Problem is, everyone knows India's long-term story and already have high expectations. India has been underperforming the past year, so he wants to see India cheaper and offer better performance before stepping in. Wait. Look at SCIF for India small-caps For EM, focus on Asian EMs, so go with GMF-N instead of VEE.
He has very little EM exposure. But compared to developed markets, EMs have gotten very cheap on valuation and price. Likes EMs, and India is one of the leaders in that space. This ETF has performed well, up 21% in past year.
Note that you can buy a similar ETF, INDA, in USD for a cheaper MER.
XID-T vs. ZID-T. A Difference in Tax Treatment? With a Canadian based ETF holding US ETFs subject to US withholding tax you can get double withholdings. He suggests asking the ETF provider what the tax consequences are for holding their funds in your Canadian account.