Economic reforms bolster this Indian ETF

Article Excerpt

India continues its impressive expansion, and remains one of the world’s top ten fastest growing economies. The country’s major structural reforms, such as the introduction of a nationwide goods and services tax and better funding for state-owned banks, should further speed up growth for 2018 and 2019. ISHARES INDIA INDEX ETF $36 (Toronto symbol XID; TSI Network ETF Rating: Aggressive; Market cap: $68.3 million) tracks the performance of the largest publicly listed Indian companies. The ETF holds a portfolio of 50 stocks. Financials account for 35% of its assets, while Industrials (12%), Oil and Gas (13%), Consumer Goods (13%) and Technology (11%) are also key segments. The fund’s top 10 holdings make up 49% of its assets. They are Reliance Industries (oil refining, 7.8%), Housing Development Finance Corp. (6.8%), ITC (tobacco, 5.6%), HDFC Bank (5.0%), ICICI Bank (4.9%), Infosys (IT services, 4.6%), Larsen & Toubro (engineering, 3.7%), Kotak Mahindra Bank (3.4%), Tata Consultancy (IT services, 3.2%) and State Bank of India (3.0%). The…