Tag Archive | INP

Three Reasons To Consider Indian ETFs

As emerging market economies continue to draw attention and appeal and are likely to remain at the forefront of global economic growth in the future, India and the exchange traded funds (ETFs) that track the Asian nation have long-term appeal and for good reason.

The International Monetary Fund (IMF) expects the Indian economy to grow by 8.5% this year and to continue its expansion in the coming years.  One reason India is expected to continue to witness healthy economic growth is its demographics.   To put it bluntly, India is blessed with a young and capable workforce that is relatively well-educated and skilled in the English language.  Furthermore, the Economist states that India’s dependency ratio, which is the proportion of children and old people to working age adults, is one of the best in the world and will remain so for a generation further enabling the country to surpass the growth of its rival emerging markets over the next quarter century. 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…

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…

India Remains Opportunistic

As talks about economic bubbles, inflation and currency manipulation continue to loom over China, many have turned to neighboring India to fulfill their appetite for emerging nations and for good reason.

Recently, India’s central bank Governor Duvvuri Subbarao stated that the nation’s economic growth is strengthening and the accelerated growth pace in the world’s second fastest growing major economy has allowed the nation’s benchmark stock index to nearly double in the last year.

Some reasons behind the Southeast Asian’s ability to grow so rapidly include increases in public spending, auto and infrastructure demand and industrial production.  India has suffered a backlog of infrastructure to build mass transport, power generation, pollution control, waste treatment and water systems and is finally starting to do so.  Read More…

The Fate of BRIC ETFs

By Kevin Grewal

2009 was a great year for Brazil, Russia, India and China, better known as the BRIC nations, as equities that track these regions of the world performed remarkably and their future remains bright.

For one reason, BRIC nations are where economic growth is expected to be.  According to the International Monetary Fund (IMF), all four of the BRIC nations are expected to show GDP growth in 2010, with China leading the way at 8.5%, followed by India at 6.5%, then Brazil at 2.5% and Russia at 1.6%. Read More…

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