BMO India Equity Hedged to CAD ETF (ZID.TO)

Avoid, based on the chart. Wait for it to show some signs of bottoming and a return of momentum. Catching falling knives is a tough skill.

India is vulnerable to oil inputs, and they have a lot of people who need it. India is absolutely hands-off right now.

He sold it, because it broke below $47 and didn't bounce off it. He expected the previous chart patterns of ups and down to continue instead. He's watching it to possibly get back in.

He doesn't use it because he is active in his trading, but note that the bid/ask spread is wide. If you're long-term, buy-and-hold this is more than adequate. Last week's trade talks between India and EU made him double his India holdings. For US-domiciled ETFs, look at FLIN or INDA.

As a portfolio manager, he doesn't know what's going to happen. But he has two tools -- having a plan, and managing risk. 

Looking at the chart, he doesn't mind it. You can see that it's pulled back to a level of support from 2025, but also to the breakout point a bit earlier on. He's trying to measure potential downside versus upside. He'd take a stab here, but keep a tight stop on it. And yes, you could also wait for a bump up to confirm that it's heading up.

Likes the idea of India, as more than half its population is under the age of 30. If they ever get their infrastructure efforts in gear, then they can grow their economy a whole lot faster than NA. The opportunity is definitely there. 

First thing to look at are the holdings. XID is "an index of an index", which is the iShares India 50. With ZID, you get the actual companies. Next thing to look at are the fees. MER of XID is 1%, for ZID it's 0.72%. So on his quick perusal, ZID is the better of the two -- it's cheaper, and you get better diversification.

Likes this ETF on technicals a lot because chart shows a triangle breakout -- descending peaks, but rising troughs. A symmetrical triangle -- when it breaks out, can be very powerful. Likes this ETF, and currency might have some upside too.

Craig (his fundamental colleague) was lecturing him the other day that there could be corruption in government. This led them to take only a small leg of 1% (instead of 2%) for the third leg.

(A Top Pick May 22/25, Up 1%)

The chart showed a long-term uptrend, then fell late last year, then based this year and is now breaking out. He expects it to return to its old high around $56. India is a developing nation doing pretty well, but will do relatively well during tariffs. It's a long-term play.

Likes EMs in general because they're not North America. US and Canadian credit ratings are under pressure. Markets in US are overdone. He's focusing on outside US. India made a pretty good deal on the tariff side. See his blog yesterday, "International Opportunities".

The dip was a chance to buy, now basing. Should hit old high of $55-56 lickety-split, and then keep going. He's just done his first leg of 2%, aiming for 6% eventually.

The question was on buying an ETF for India. He likes the idea of investing in India. He thinks China will continue to struggle and this benefits India which has good potential at 8% GDP growth forecast. For U.S. dollars he recommends INDA and for Canadian dollars he suggests ZID. He reminds investors that there is a lot of volatility in foreign markets.

India has been an amazing growth story, attracting enormous interest. India ETFs in Canada and US tend to be more expensive. Uses MSCI for screens on ESG, which would screen out tobacco and firearms among others. Tries to achieve a balanced sector exposure. One of the better ways to get India from Canada. MER is only 67 bps, significantly cheaper than XID and others.

Would not worry about currency hedge - complex trade with costs. Overall a good product if looking to get exposure to India. 

India is one of those areas of the world where people talk of the long term story. They are relatively insulated from trade wars. He is caught on the long term India market. It is expensive. He owns SCIF-N.

Modi is now allowing Apple to do business there. India's had problems with bureaucracy, and if he makes it easier for foreign companies to come in and raise capital, it could be great. It depends on how the trade talks will go in terms of China. China has many geopolitical issues.