With the growth being experienced by the Indian economy, investors
and traders have been searching for alternatives without the need
to open a brokerage account and deal with native currency exchanges.
Whilst investing in Indian American Depository Receipts remains an
alternative, the Indian iShares ETF provides the opportunity for investors
to gain exposure to a basket of Indian stocks. With the full power
to go long, short and use as a hedge, Indian exchange traded funds
are a welcome additional to the financial markets.
The Indian ishares ETF
The India exchange traded fund is traded on the Singapore exchange
and denominated in US dollars. The fund seeks to replicate results
that correspond to the MSCI India Index.
Top 10 Holdings
1. Infosys Technologies 13.46%
2. Reliance Industries 13.09%
3. ICICI Bank 8.21%
4. Housing Dev Finance Corp 4.33%
5. Reliance Communication 3.90%
6. Oil & Natural Gas Corp 3.49%
7. Satyam Computer 3.35%
8. HDFC Bank 3.14%
9. Larsen & Toubro Ltd 2.62%
10. ITC Limited 2.54%
Sector Composition Breakdown
Information Technology 21.19%
Financials 20.12%
Energy 17.23%
Industrials 9.19%
Consumer Discretionary 6.25%
Consumer Staples 6.07%
Materials 6.03%
Health Care 4.91%
Telecommunication Services 4.68%
Utilities 2.31%
iPath MSCI India Index ETN (INP)
This Indian Index ETF seeks to capture the performance of the MSCI
India Total Return Index. The Index seeks to represent 85% of the
market capitalization (free float) of the equity securities by industry
group within India.
Top 10 Holdings:
Reliance Industries Ltd: 14.47%
Infosys Technologies Ltd:10.73%
Technology ICICI Bank Ltd: 8.67%
Development Finance Corp. Ltd: 4.61%
Reliance Communications Ltd: 4.17%
Larsen & Toubro Ltd: 3.37%
HDFC Bank Ltd: 3.33%
Oil & Natural Gas Corp. Ltd: 2.86% }
Satyam Computer Services Ltd: 2.73%
Bharat Heavy Electricals Ltd: 2.47%
First Trust ISE Chindia Index (FNI)
This ETF seeks to replicate the performance of the ISE Chindia Index.
Although not completely India based, investors can gain exposure
to a basket of Indian and Chinese stocks.
Top 10 Holdings:
China Mobile Ltd Depository Receipts: 7.54%
PetroChina Co Ltd Depository Receipts: 7.24%
ICICI Bank Ltd Depository Receipts: 6.88%
China Petroleum and Chemical Corp (Sinopec) Deposit: 6.69%
Infosys Technologies Ltd Depository Receipts: 6.64%
Satyam Computer Services Ltd Depository Receipts: 6.35%
Aluminum Corporation of China Ltd Depository Receipts: 4.74%
China Life Insurance Co Ltd Depository Receipts: 4.22%
CNOOC Ltd Depository Receipts: 4.06%
HDFC Bank Ltd Depository Receipts: 3.82%
Indian ETF products are a popluar way to capitalise on the growth
being experienced by the Chinese and Indian economies.
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