After the gold ETF list, oil ETF list and silver ETF list, next in line is the India ETF list. Strictly speaking, there are just two ETFs that focus on Indian equities.
There is one ETN that focuses on Indian equities, and then I included an ETF that invests in Indian and Chinese equities.
Here are all the funds:
Wisdom Tree India Earnings Fund (EPI): This India ETF invests in Indian companies that are listed on a major stock exchange in India and meet the following criteria:
- Have generated at least $5 million in earnings in the last fiscal year.
- Have a market capitalization of at least $200 million.
- Have an average daily dollar volume of at least $200,000 for each of the six months prior to the Index measurement date.
- Have traded at least 250,000 shares per month for each of the six months prior to the Index measurement date.
- Have a price to earnings ratio (“P/E ratio“) of at least 2 as of the Index measurement date.
PowerShares India Portfolio (PIN): This India ETF seeks to track the Indus India Index (before fees and expenses). The index in turn is designed to replicate the Indian equity markets as a whole, through a group of 50 Indian stocks selected from a universe of the largest companies listed on two major Indian exchanges. The India Index has 50 constituents.
iPath MSCI India Index ETN (INP): This is an India ETN and not an ETF. This India ETN tracks the MSCI Total Return Index, which is an index that represents approximately 85% of the free-float-adjusted market capitalization of equity securities by industry group within India. As of March 31, 2009, the Index was comprised of 59 companies listed on the National Stock Exchange of India.
First Trust ISE Chindia Index Fund (FNI): This is not an ETF solely focused on India. It invests in the ADRs, ADS or stocks of companies both in India and China. It has 50 holdings and the biggest holding is Infosys Technologies with 8.01% and the second biggest holding is China Life Insurance Company with 7.74% as on March 31st 2009.
Direxion Daily India Bull 2x Shares (INDL): This is a daily leveraged ETF that seeks daily investment result of 200% of the performance of the Indus India index. This is a 2x leveraged fund that seeks daily returns. You can read about leveraged ETF funds here.
Direxion Daily India Bear 2x Shares (INDZ): This is also a daily leveraged India ETF that seeks daily investment returns, but in opposite direction of the Indus India index. The 2x leverage daily returns means that it is not suitable for someone wanting to hedge their portfolio over a long term, and is at best an active management tool that can be played for the very short duration.
iShares S&P India Nifty 50 Index (INDY): The iShares S&P India Nifty 50 Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&P CNX Nifty Index. It has an expense ratio of 0.89%, and the Nifty is one of the most popular indices in India.
EGShares India Small Cap (SCIN): The Emerging Global Shares Indxx India Small Cap Exchange Traded Fund (ETF) seeks investment results that generally correspond (before fees and expenses) to the price and yield performance of the Indxx India Small Cap Index. The index is a freefloat market capitalization weighted stock market index comprised of a representative sample of 75 Indian companies that Indxx, LLC determines to be the representative of small market capitalization companies domiciled in India. This fund is new and has limited operating history.
EGShares India Infrastructure (INXX): The Emerging Global Shares Indxx India Infrastructure Index Exchange Traded Fund (ETF) seeks investment results that generally correspond performance of the Indxx India Infrastructure Index. The Indxx India Infrastructure Index is a free-float market capitalization weighted stock market index comprised of 30 leading companies that Indxx, LLC determines to be representative of Indiaâ€™s Infrastructure industries, as defined by the Industry Classification Benchmark(ICB).
Photo Credit: Marko Belluci
Update: Included the Direxion Leveraged funds and iShares S&P India Nifty 50 on May 09 2010.
Second Update: Included the EGShares India Small Cap and Infrastructure ETFs on Sep 12 2010.