Stockchase Opinions

John DeGoey iShares CNX Nifty India XID-T STRONG BUY Nov 11, 2019

He loves emerging markets and broad diversification, so he prefers VEE to XID. But also, India is an excellent country to invest with EM. India boasts a growing middle class and upwardly mobile workplace--he would bet big on India. However, don't bet the farm on any ETF, but rather 5-10%.
$38.300

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COMMENT
Similar to ZID. There used to be a difference, but he thinks not anymore. He likes India. Horrible bureaucracy there though. Made a lot of progress. Huge companies are there. Should do more homework on this. One of the things about including EM in portfolios is that you have to be careful not to overweight. He is conservative with EMs.
COMMENT

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.

WAIT

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.

TOP PICK
He had been suggesting China but he now suggests changing that to India. The median age there is 28. The rate of literacy is growing dramatically.
TOP PICK

India surpassing China as most populous country. 
English speaking with Western influence.
Rebellion against China - will see investment from West.
Good for international exposure. 

BUY

Good product to get exposure to India stock markets. Helps get emerging markets performance as well. Relatively safe product. Would recommend buying. 

WEAK BUY

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.

DON'T BUY

India has been an amazing growth story, attracting enormous interest. India ETFs in Canada and US tend to be more expensive. Legacy product from iShares, but expensive.

PAST TOP PICK
(A Top Pick Jul 24/23, Up 23%)

Excellent product, that will continue to hold. Very good performance of Indian economy. Would recommend a small portion to balance portfolio. Large tech advances in the Indian economy. Excellent compliment to North American equities.