So where are the hot emerging markets now? Is China still an “emerging” market? Many analysts agree that Russia is still a wild card. Besides, Russia’s economy is still solely oil-based. Brazil’s rich array of resources and growing middle class certainly keeps it hot, but for many, India is the best of the BRICs.
Of the BRIC countries (Brazil, Russia, India, China), it’s worth noting that only India has a widespread, domestic English-speaking population, a fact that helps with international business relationships.
What’s the best way to dip your dollars in India specifically? Look no further than the first and most liquid 100% pure-play India ETF.
WisdomTree 100% India Earnings ETF (EPI)
WisdomTree recently launched EPI – the “first and most liquid” ETF that focuses exclusively on the local shares of 125-150 profitable Indian companies. The ETF was launched in February of 2008, but owing to the huge financial crisis that ensued, I’m guessing that if you’re like me, you diverted your attention away from stock opportunities and so you may not have heard of it yet.
The ETF is based upon WisdomTree’s own India Earnings Index, which is based upon a fundamentals-analysis of companies that are both incorporated in and traded in India.
The most recent top-ten weightings in the ETF are the following Indian companies:
- Reliance Industries
- Infosys Technologies
- Oil & Natural Gas Corp
- Bharti Airtel Ltd
- State Bank of India
- Reliance Communications
- Icici Bank Ltd
- Housing Development Finance Co
- Tata Consultancy Services Ltd
- Hindustan Unilever Ltd
Since some of these companies trade on OTC markets as pink sheets, it seems to be a heck of a lot easier to just buy the ETF, at least until you get to know the Indian market a bit better yourself.
In another few years, we will have a greater sense of the real performers in the Indian market and at that point it could be wiser to start cherry-picking individual stocks – as tempting as it is to want to jump in with both feet right now.
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