iShares S&P India Nifty 50 Index (INDY)

In this era of global economic uncertainty, it is not wise to keep all your eggs and in the same basket and hence more and more investors are looking for value creating opportunities mainly in the emerging markets of the world specially India which is seen as the next big largely untapped market compared to the overflowing Chinese markets. The facts speak for themselves and reveal that India is not far behind from neighboring China. Although India hasn't sported the GDP growth that China has, but from 2003-2008, India's average growth rate has been a healthy 8.5% making it the second-fastest growing major economy in the world. Most of the existing India centric funds have shown impressive results and there is no surprise that many more India centric funds are in the pipeline. The sooner one can enter the enormous Indian markets which are fundamentally strong and clawed by he results of other global markets, the better it is going to be for the investor. The returns can be impressive as well and who knows they might even buy you a ticket to visit the Taj Mahal in India.

Joining this Indian success story is the the iShares S&P India Nifty 50 Index Fund (INDY) which is designed to track the S&P CNX Nifty Index that represents the 50 largest and most liquid Indian securities listed on the National Stock Exchange (NSE) of India. The Index is a rupee denominated index designed to measure the performance of the largest and most liquid companies in the Indian equity market that are available to international investors.


iShares S&P India Nifty 50 Index Fund (INDY) began trading on the Nasdaq on 20th November, 2009. INDY is the fourth exchange traded product (ETFs and ETNs) to track Indian equities, but it is the first to follow the Nifty. As its name implies, the fund has 50 holdings. INDY has a 0.89% expense ratio. Current top sector and industry weightings include banks 17.1%, refineries 13.2%, computer-software 12.1%, engineering 6.7%, and steel & steel products 5.0%. Investors looking for large cap exposure may like INDY, but its relatively high expense ratio and concentration among major holdings are potential drawbacks although as on 14th April 2010, the ETF was up 10% YTD.

Top Daily Holdings as of 7/9/2010

RELIANCE INDUSTRIES LTD 11.47%
INFOSYS TECHNOLOGIES LTD 8.90%
ICICI BANK LTD 6.32%
LARSEN & TOUBRO LTD DETACHED 6.19%
ITC LTD 5.06%
HOUSING DEVELOPMENT FINANCE 4.94%
HDFC BANK LIMITED 4.59%
STATE BANK OF INDIA 4.02%
OIL & NATURAL GAS CORP LTD 2.81%
TATA CONSULTANCY SVS LTD 2.53%

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