Are India ETFs Back On Track? [WisdomTree India Earnings Fund (ETF), iShares S&P India Nifty 50 Index Fund]

iShares India 50 ETF (NASDAQ:INDY)

This fund follows the CNX Nifty Index, which seeks to track the performance of the largest 50 Indian stocks. ITC, Infosys and Reliance Industries occupy the top three positions in the basket with a combined 24% of assets. The product is widely spread out across number of sectors with banks (20.06%), software (17.31%) and cigarettes (8.72%) taking the top three spots.

The ETF has amassed $449.1 million and trades in volume of nearly 165,000 million shares a day, suggesting some extra cost in the form of tight bid/ask spread beyond the expense ratio of 0.93%. INDY added nearly 5.2% over the past five trading sessions (read: India ETF in Focus on Recent Rate Hike).

WisdomTree India Earnings Fund (NYSEARCA:EPI)

This product tracks the WisdomTree India Earnings Index, holding 169 securities in its basket. The fund is heavy on financials with one-fourth share, while energy, information technology and industrials get double-digit allocation in the basket. Reliance Industries, Infosys and Oil & Natural Gas are the top three holdings with a combined 22% of assets.

EPI is the largest and most popular ETF targeting India with AUM of $841.3 million and average trading volume of more than 4.3 million shares. Expense ratio came in at 0.83%. The fund was up over 5% over the past week.

Bottom Line

These products are clearly outpacing the broad U.S. market fund (SPY), emerging Asia Pacific fund (GMF) and the broad emerging market fund (VWO) by wide margins. This trend is likely to continue at least for the near term given the promising trends, improving economy and a bullish outlook for post-election boom.

This article is brought to you courtesy of Eric Dutram.

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