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ETF Inflows Show US Investors Are In Love With India's Equity Market - Report
Tom Burroughes
28 November 2014
US investors, encouraged by the outlook for post-election India's economy and booming stock market, have been moving money into exchange-traded funds that focus solely on India, a report says. US-listed India ETFs have added about $2 billion in net new assets so far this year, outshining other emerging market funds. That brings the total assets of the 10 India ETFs tracked by Morningstar to US$6.3 billion, up by around half since January this year, Reuters reported. Those inflows are far in excess of the $272 million added to broad emerging markets ETFs this year and represent the greatest single-country net asset gain when compared with US-listed ETFs that focus on Brazil, China, Russia or South Africa. In general, emerging market indices have not had a particularly strong year – but India, which has a new reform-focused government since elections in May, is the standout. The MSCI India Index of equities has risen by 28.5 per cent since the start of January.