Invesco India ETF

PIN

Market cap $216M

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.

The Invesco India ETF offers exposure to slightly higher quality Indian stocks but suffers from higher expenses, lower liquidity, and inconsistent income compared to peer India ETFs. India's macroeconomic outlook is robust, with strong GDP growth, limited tariff impact, and supportive monetary policy driving positive sentiment for Indian equities. Despite PIN's unique strategy, its performance and risk-adjusted returns do not justify choosing it over more cost-effective and liquid alternatives like FLIN.

PIN which focuses on around 200 quality and high yielding Indian stocks has barely moved over the past year, but we are now prepared to turn cautiously optimistic. Loan growth which has been on a declining trend for a while, looks to have bottomed out, while lower LCR requirements next year could lift credit growth by 1.5-2%. PIN offers a compelling earnings growth-to-valuation tradeoff, versus other emerging markets, and global stocks.

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

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

Indian equities may be going through a particularly bad patch. But the Invesco India ETF's emphasis on quality has helped to limit its downside. With external uncertainties looming large, a PIN allocation still makes sense.

Indian stocks have pulled back after a very strong year. But even against a challenged Q4 backdrop, the quality-focused Invesco India ETF (PIN) has proven resilient. Heading into a potentially volatile year ahead, adding some downside protection via PIN still makes a lot of sense.

Major Indian banks are expected to sustain high leverage ratios, as healthy profits and a rapidly growing economy will help them build buffers. India's economic growth, which slowed to 5.4% year over year in the July–September quarter from 8.1% in the same period in 2023, is expected to recover as most economists expect the government and companies to step up spending in the coming months.

Indian stocks have begun to pull back after an outstanding year. Yet, underlying fundamentals remain as robust as ever. Quality-focused PIN ranks highly for those looking to play it safe anyway.

India's updated Budget has roiled equity markets. Still, the fundamental long-term investment case remains intact. In the face of near-term valuation pressure, Invesco's India ETF stands out.