iShares S&P India Nifty 50 Index Fund

INDY

Market cap $690M

WisdomTree India Earnings Fund receives a strong buy rating for its diversified exposure and superior risk-adjusted returns versus iShares India 50 ETF. India's robust GDP growth, young demographics, and ongoing structural reforms support a compelling long-term investment case for the country. EPI offers broader sector diversification and focuses on profitable companies, while INDY is heavily concentrated in financials and top holdings.

India's strong 6.4% projected GDP growth and favorable demographics make it an attractive emerging market opportunity, despite higher volatility. INDY ETF offers focused exposure to India's top companies, especially financials, benefiting from banking reforms, digitalization, and consumer growth trends. The fund's high concentration in large caps and key industries provides growth potential, but also increases company-specific and liquidity risks.

Among APAC equity markets, Australia has a higher beta to oil prices while India, Indonesia and Thailand have lower betas. Domestic political uncertainties have been one main reason for the decoupling trend seen in Indonesia and Thailand.

A surprise Israeli strike on Iran sent oil prices soaring. This may prompt sharp reactions in country ETFs such as ENOR (upside) and INDY (downside).

Border tensions have flared in India. But contagion risks appear to be well-contained. Focus on an increasingly attractive setup for Indian mega-caps.

India stocks and ETFs experienced sharp declines as geopolitical tensions with Pakistan intensified.

Despite the recent rise of geopolitical tensions with the neighboring country, Pakistan, investors remain bullish on India's long-term economic prospects. Even amid tensions, India ETFs like iShares India 50 ETF INDY have remained flat.

U.S. equities have probably left behind their peak time and may face long-term decline, per Christopher Wood, Global Head of Equity Strategy at Jefferies Financial Group Inc., as quoted on Bloomberg.

India's stocks have erased most of this year's losses, thanks to early signs of increased government spending and monetary easing.

After months of downcycle concerns, India's domestic fundamentals are finally turning. But with external headwinds picking up, sticking with quality still makes sense. Having de-rated in recent months, mega cap-focused INDY is worth a look.