ISHARES S&P INDIA NIFTY 50 INDEX FUND $21.48 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that aims to track the S&P CNX Nifty Index, which represents the 50 largest, most liquid Indian securities.
The fund’s top holdings are ITC Ltd. (conglomerate), 8.6%; Reliance Industries Ltd. (conglomerate), 7.5%; ICICI Bank, 6.9%; HDFC Bank, 6.6%; Infosys Technologies (software), 6.6%; Housing Development Finance, 6.3%; Larsen & Toubro Ltd. (conglomerate), 4.5%; Tata Consultancy Services (information technology), 3.9%; and State Bank of India, 3.3%.
The fund’s industry breakdown includes Banks, 19.8%; Computers, 13.3%; Cigarettes, 8.5%; Refineries, 8.1%; Housing, 5.9%; Automobiles, 5.5%; Engineering, 4.6%; Pharmaceuticals, 4.3%; Electricity, 3.8%; and Oil Exploration/Production, 3.8%. The ETF has an expense ratio of 0.89%.
India’s economy slowed to a 5.3% growth rate in the first quarter of 2012 from 9.2% a year earlier, but it should rise to over 6.6% next year.
iShares S&P India is a buy for safety-conscious investors who are willing to accept some risk.
