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What is an India ETF?

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  • Written By: A. Leverkuhn
  • Edited By: Andrew Jones
  • Last Modified Date: 14 June 2018
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An India ETF is a kind of exchange traded fund or ETF that helps investors to make diversified plays and get specific access to markets. An ETF basically includes a lot of different stocks in the same single fund product, so that those who invest are investing in a good range of companies in a specific market or sector. The India ETF focuses on stocks of Indian companies.

There are a lot of reasons why investors may be enthusiastic about an India ETF. One is that India is a rapidly modernizing society that is in the business news almost all the time. Investors might see specific articles that make them think about the possibilities of hitching their wagons to India’s star. India is actually one of four BRIC countries, including Brazil, Russia, India and China, that have been identified as some of the fastest-growing large economies in the world. This idea drives lots of global investors to use products like India ETFs to try to get invested in how the Indian economy is doing.

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Individual investors who want to get into the Indian part of the stock market have a lot of different options. Lots of Indian companies are actually traded through global exchanges. In addition, financial companies offer a variety of India ETFs. For example, an Indian ETF including larger stocks, like PowerShares India (ticker symbol: PIN) might include the stock of renowned Indian car maker Tata Motors, which is getting noticed in the global community. Other India ETF options feature “India Small Caps” which are smaller stocks that have the potential to expand. ETFs like the Market Vector India Small Cap Index (ticker symbol: SCIF) or the EG Shares India Small Cap (ticker symbol: SCIN) offer investors a way to get into the game with lower priced Indian stocks.

Although not all investors like using exchange traded funds, some of them are very enthusiastic about the opportunity to make more sophisticated trades with the same click of a button. Products like ETFs and iShares are drawing a new kind of investor, one who understands the value of diversification, but wants easy products that he or she can buy or sell quickly, track online, and make intraday transactions on. The India ETF promises to be a popular part of tomorrow’s financial landscape.

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