EXCLUSIVE: India To Lead Emerging Markets, Driven By Modi's 'Pro-Business Environment,' Says WisdomTree CIO
Portfolio Pulse from Surbhi Jain
WisdomTree's CIO, Jeremy Schwartz, highlights India as a leading investment destination among emerging markets, driven by its robust population growth and GDP expansion. The WisdomTree India Earnings Fund ETF (EPI) has outperformed other emerging market ETFs, including those tracking Chinese and Brazilian equities. Schwartz attributes this success to India's economic policies and anticipates further growth if Prime Minister Narendra Modi wins the upcoming spring elections and continues his pro-business reforms. Other Indian-equity tracking ETFs also showed positive returns this year.
April 24, 2024 | 3:22 pm
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NEGATIVE IMPACT
The iShares MSCI Brazil ETF (EWZ) has underperformed with a -9.34% return YTD, contrasting sharply with India's equity market success.
EWZ's negative performance highlights the challenges faced by Brazilian equities, making it less appealing to investors compared to the thriving Indian market.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The iShares China Large-Cap ETF (FXI) returned +8.61% YTD, but faces challenges due to geopolitical headwinds and sluggish economic growth.
Despite a positive return, FXI's future performance could be hampered by geopolitical issues and China's economic slowdown, making it less attractive compared to India-focused ETFs.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
NEUTRAL IMPACT
The iShares India 50 ETF (INDY) has underperformed relative to other Indian-equity tracking ETFs with a 2.69% return YTD.
While INDY's return is positive, it's lower compared to other India-focused ETFs. This may reflect specific market segment performance or fund strategy, but still aligns with the overall positive trend in India's equity market.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 75
POSITIVE IMPACT
The WisdomTree India Earnings Fund ETF (EPI) has shown a strong performance with a 9.43% return YTD, outperforming other emerging market ETFs.
EPI's outperformance is attributed to India's strong economic growth and demographic advantages. Schwartz's positive outlook on India and potential further reforms by Modi could attract more investments into EPI.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The Franklin FTSE India ETF (FLIN) has seen a 7.06% return YTD, indicating strong investor confidence in India's market potential.
FLIN's performance is closely tied to India's economic growth and the positive outlook shared by investors, mirroring the trends seen in other India-focused ETFs.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
POSITIVE IMPACT
The iShares MSCI India ETF (INDA) has returned 7.13% YTD, benefiting from India's economic growth and market performance.
INDA's positive performance is driven by the same factors boosting EPI, with India's strong economic fundamentals and market growth providing a solid foundation for investor confidence.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
The iShares MSCI India Small-Cap ETF (SMIN) has returned 6.80% YTD, showcasing the depth of India's market beyond large-cap stocks.
SMIN's positive YTD return reflects the broader appeal of India's market, including the small-cap sector, which benefits from the country's economic policies and growth trajectory.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 85