[This article is a free preview of the special ETF research report India ETFs In-Focus. ETFdb Pro members can read the entire report here; sign up for a free 7-day trial to get your copy]
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 Yet India ETFs turned in some of the most disappointing returns of 2011 due to concerns over inflationary pressures, outdated infrastructure, and a general wave of risk aversion.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…]
EGShares, the only U.S.-based ETF issuer focusing exclusively on emerging markets funds, announced the latest addition to its suite of products targeting the developing world this week. The new India Consumer ETF (INCO) will seek to replicate the INDXX India Consumer Index, a 30-stock composite of companies listed on India’s National Stock Exchange and Bombay [...]
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 [...]
This past week wasn’t nearly as kind to investors as stocks moved modestly higher to start the week only to fall sharply in Friday trading, cancelling out all of the gains from earlier in the period. Much of this turmoil stemmed from geopolitical issues, namely oil’s continued rise and the budget battle in the halls [...]
The start of 2011 has been a very rough one for most of the world’s major emerging markets as they have seen their share prices fall across the board. Moderating fears over the economic situation in a number of developed markets have pushed many investors back into industrialized nations while concerns over rate hikes have [...]
As the ETF world continues to grow, the competitive landscape continues to evolve. In recent years, a growing number of firms have attempted to differentiate themselves by offering unique exposure to asset classes and strategies not previously available–such as funds tracking the Philippine stock market or ETNs linked to the price of industrial metals such [...]
With housing markets in a tailspin, ongoing concerns over the fiscal health of developed markets, and no signs of meaningful job creation in the U.S., these are uncertain times. Conflicting data reports have clouded the outlook for the U.S. economy, while investors remain divided over the prospects for fast-growing emerging markets.
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 [...]
There is no denying that the ETF boom is in full swing, as billions of dollars continue to flow into the industry every month despite a difficult economic environment. As individual investors and advisors alike become more informed on the nuances and potential benefits of ETFs, usage has surged. Part of the impressive surge in [...]
Once upon a time, almost all ETFs offering exposure to international equity markets consisted of the largest and most liquid stocks traded in a specific country or region. Because financial institutions and oil companies tend to be the largest companies by market capitalization, most international ETFs maintain heavy tilts towards these sectors. But the last [...]
