With economic optimism rising and long-term drivers strengthening, these ETFs offer a smart way to tap the country's 2026 breakout potential.
Mexico's decision to raise tariffs as high as 50% will affect $1 billion worth of shipments from major Indian car exporters, including Volkswagen and Hyundai, despite industry lobbying to persuade New Delhi to prevent such a move, according to two sources and a letter from an industry group reviewed by Reuters.
The iShares MSCI India ETF has underperformed other ex-Russia BRICS ETFs in 2025, delivering only low single figure gains, whereas other EMs have presented substantially higher returns. INDA ETF appears cheap relative to its historical average, with a cross-sectional z-score of -0.51, suggesting potential value. Despite near-term headwinds, I see India's economy and stock market as poised for outlying returns over the next decade. Cyclical outperformance also seems likely.
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The fund is designed to track the performance of equity securities in one of the most dynamic markets in the world, India. It commits at least 80% of its assets to securities that are part of its underlying index or have economic characteristics nearly identical to it. The target index reflects the large- and mid-cap segments of the Indian market, providing an investor a comprehensive exposure to a broad segment of that market. As a non-diversified fund, it may invest more heavily in fewer issues, potentially increasing its volatility and risk.
The fund invests a minimum of 80% of its assets directly in the securities that constitute the underlying index. This direct investment strategy aims to replicate the performance of the index as closely as possible, providing investors with a clear picture of their exposure to the Indian market’s large- and mid-cap segments.
In addition to direct index securities, the fund also allocates investments in financial instruments that have economic characteristics substantially identical to those of the index components. This may include derivative contracts or other financial products that mimic the performance of the index securities, thus offering similar market exposure and risk/return profiles.
By focusing on companies whose market capitalization aligns with the large- and mid-cap segments of the Indian securities market, as defined by the index provider, the fund positions itself to capture the growth and performance of India’s more established and expanding companies. This market capitalization focus is essential for investors looking for exposure to India’s significant yet somewhat less volatile market segments.
The non-diversified status of the fund allows it to invest more significantly in fewer issues, offering the potential for higher returns but also higher volatility and risk. This characteristic might appeal to investors with a higher risk tolerance and a focus on the Indian market.