Tag Archive | India

9 ETFs To Play Currency Debasement

As developing nations continue to implement loose monetary policies, keep interest rates low and boost money supply, a nation’s debt and currency debasement should me of much concern. 

Most recently, a study indicated that the U.S. national debt has ballooned nearly 12 fold over the last 30 years.  Additionally, over this same time span the ratio of debt to GDP has gone from nearly one-third to 85%.  During this time of exploded debt, GDP has only expanded 5.3 times, indicating that debt is growing at twice as fast as the U.S. economy.  Similar trends have been seen in Europe, in particularly Greece, Spain and Portugal.

Some concerns of this exponential growth in debt include hyperinflation, as a result of printing more currency, a decline in the value of a nation’s currency, better known as currency debasement, and increased costs of borrowing, which make it difficult to chip away at deficits. Read More…

Asia Could Boost Solar ETFs

Nearly five months ago, the Asian Development Bank started a major drive to promote the use of solar power throughout the continent which could eventually lead to positive price support in the Guggenheim Solar ETF (TAN) and the Market Vectors Solar Energy ETF (KWT).

Under this initiative, the Asian Development Bank aims to put in place solar power projects with a total capacity of 3,000 megawatts by 2013, pushing capacity to six times what it currently is.  The solar move is especially taking place in India, where the government has committed $20 billion to its solar program in hopes of having 20,000 megawatts of grid-connected solar energy by 2022 and nearly 200 megawatts of off-grid solar energy by 2013.  Read More…

A New ETF To Play India’s Growth

As investors continue to reap the benefits of growth in emerging markets, ETF provider, Van Eck, recently announced the launch of the Market Vectors India Small-Cap Index ETF (SCIF) giving investors yet another way to access the emerging nation.

SCIF seeks to replicate the performance of the Market Vectors India Small-Cap Index which provides exposure to publicly traded companies that are headquartered in India or that generate the majority of their revenues in the country.  Additionally, the index utilizes a float-adjusted modified market capitalization weighting methodology to determine holdings.    Read More…

India Infrastructure ETF Destined To Shine

With the continuing innovation in the ETF landscape, the announcement of the India Infrastructure ETF (INXX), the first sector-specific India fund to track the nation’s infrastructure sector, could be the answer to reaping the benefits of a sector that is destined to shine.

EGShares newest ETF carries an expense ratio of 0.85% and seeks to replicate the performance of the Indxx India Infrastructure Index, which is a benchmark that consists of 30 different companies that are influenced by the infrastructure sector.  As for sector allocations, nearly 23% of the ETFs assets are allocated to electricity companies, 19% to construction and materials companies and 14% to industrial metals and mining.  Read More…

Four Diversified Plays On Asia

As U.S. equities continue to show signs of instabilities due to fears of crippling debt, deflation and high unemployment, many have turned to alternative regions, in particularly Asia to seek returns.

When speaking of Asia, the first nation to come to mind is China, but there are many more nations that are likely to continue to outperform the world’s second largest economy.  As a region, Asia has drawn attention due to its large growth rates, insatiable demand for commodities, cheap labor and increasing private consumption. 

 Take Singapore for example, whose economy grew at a seasonally adjusted 18.1% in the first half of the year and is benefiting from China’s stellar growth.  The region has been able to pull themselves up by their boot straps, mainly due to fiscal stimulus plans, which accounted for nearly 4% of GDP, and were higher than any other region of the world.  Read More…

ETFs For Currency Debasement

As the crisis in Europe continues to take its toll on the markets and bank borrowing costs rise, a nation’s debt and currency debasement should me of much concern. 

Most recently, a study indicated that the U.S. national debt has ballooned nearly 12 fold over the last 30 years.  Additionally, over this same time span the ratio of debt to GDP has gone from nearly one-third to 85%.  During this time of exploded debt, GDP has only expanded 5.3 times, indicating that debt is growing at twice as fast as the U.S. economy.  Similar trends have been seen in Europe, in particularly Greece, Spain and Portugal. Read More…

Inflation Could Hinder India’s ETFs

Despite witnessing stellar economic growth over the past two years, rising prices could put a damper on India’s future.

In March 2010 India’s consumer prices rose 14.9 percent when compared to a year ago, marking the largest increase of any G-20 nation.   This drastic increase in prices has been led by a surge in food prices which has been brought on by pure supply and demand forces.  With a drier than normal monsoon season, an absence of rainfall took its toll on rice, wheat and other crops, decreasing supply.  In fact, the Asian nation has seen per capita food grain production drop to levels seen in 1950.  Read More…

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