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With year-end rebalancings underway and planning for 2012 ramping up, many investors are taking a look at asset classes that have struggled this year in hopes of identifying assets with significant long-term upside at discounted prices. One asset class that keeps turning up in the hunt for investment bargains is India, one of the world’s most exciting emerging markets that has struggled mightily throughout 2011.
India is expected to experience elevated growth rates for several decades to come, eventually becoming the second largest economy in the world. As the nation’s massive population continues to urbanize and acquire discretionary wealth for the first time, the country’s stock markets are poised to appreciate dramatically. Yet India ETFs turned in some of the most disappointing returns of 2011 due to concerns over inflationary pressures, outdated infrastructure, and a general wave of risk aversion. That has positioned the several ETFs that offer exposure to Indian stocks on the watch list of risk-tolerant investors willing to bet that the fortunes of this economy turn around in 2012 and that the tremendous economic potential is further unlocked in the new year. [click to continue…]
Emerging markets have hit some rough patches in 2011, as concerns over debt in the developed world as well as a possible slowdown in some key developing countries has caused many to pull out of risky markets entirely. As a result, broad based funds such as VWO or EEM are down on the year and [...]
If investors weren’t already aware of the tremendous “growth gap” between the developed and emerging markets of the world, a report Tuesday out of New Delhi served as a nice reminder. India’s gross domestic product grew by 8.8% in the quarter ended June 30, roughly in line with analyst estimates for expansion in the world’s [...]
As emerging markets have raced ahead of their developed counterparts in the last two years, investors around the globe have begun to tilt portfolios more heavily towards securities that many have historically perceived to be excessively risky. The inflows into equity ETFs serve as one piece of evidence of this trend; through the first seven [...]
With the developed markets of the world crippled by mounting debt, stagnant growth, and suddenly severe political risk, investors have undeniably begun allocating a larger portion of their portfolios to emerging markets. Boosted by ongoing urbanization, flexible and cheap manufacturing, and an abundance of natural resources, the developing economies have emerged as the leaders of [...]
Most of what’s written about ETNs is cautionary in nature, focusing on the credit risk inherent in any debt security. And with good reason; the risks of ETN investing are very real. While most exchange-traded notes are issued by major financial institutions with lofty credit ratings, the last few years have taught investors that credit [...]
As developed economies struggled to regain their footing in the wake of the recent economic downturn, many investors have been drawn to the potential for meaningful growth offered by emerging markets. While recovery efforts in the U.S., western Europe, and Japan have been slow to gain traction and deliver meaningful economic expansion, developing markets have [...]
The ETF industry picked up steam in November, with several highly-anticipated funds coming to market and multiple issuers disclosing new details on innovative products that could be launched in 2010. The biggest news for the month was the entrance of Charles Schwab into the industry with the launch of four ETFs in early November. Debuting [...]
India reported surprisingly strong GDP growth for the third quarter, posting 7.9% growth in the July through September period. These numbers surprised both analysts and government officials: the growth was higher than even the most bullish analyst forecast, and the Reserve Bank of India said that it will likely revise upward future forecasts. According to [...]
Barclays Global Investors announced on Friday the launch of the iShares S&P India Nifty Fifty Index Fund (INDY), a new ETF tracking an index composed of the 50 largest and most liquid Indian securities listed on the National Stock Exchange of India. INDY will compete with several existing India exchange-traded funds, including products from iPath, [...]