ETFs for India’s New Bull Market

India is doing great. The population is well educated, the demographics are fabulous and the political leadership is pro market and generally committed to implementing pro-growth economic policies.

Now, recall that last year we pounded the table on the Chinese bull market, while telling you about the numerous ETFs you could use to gain exposure to the Chinese equity markets.

This year, India could be the country that rides a new bull wave. Because of this possibility, you need to be aware of all of the ETFs you can use to take advantage of India’s new bull market.

The table below shows the top seven funds pegged to the India equity market. The rankings are from the highest to lowest in terms of assets under management, or AUM.

Source: Bloomberg as of 3.5.2015

The most widely held fund here is the iShares MSCI India ETF (INDA), which tracks the top 85% of companies in the Indian securities market as measured by market capitalization.

In the chart below, you can see the significant relative outperformance of INDA vs. the SPDR S&P 500 ETF (SPY).

Year to date, INDA is up about 9.6%, while SPY is only higher by approximately 1.1%. If we look to the funds during the past 12 months, we have INDA sporting a very large 29.2% gain, while the SPY is up a healthy, yet relatively puny, 10.5%.

The new bull market in India is here, and it’s likely to hang around for a lot longer. If you like investing in growth areas around the globe, then there’s a lot to like about India.

Do you want to hear more details about the India bull market? If so, then check out today’s ETF University podcast, which is all about how you can use ETFs to ride India’s new bull market.