India’s reforms need time

Article Excerpt

ISHARES INDIA 50 ETF $29.21 (Nasdaq symbol INDY; buy or sell through brokers; us.ishares.com) is an ETF that tracks the Nifty 50 index—the 50 largest, most liquid Indian securities. The ETF began trading in November 2009. The fund’s top holdings are: Housing Development Finance, 7.0%; ITC Ltd. (conglomerate), 6.6%; Infosys (information technology), 6.4%; Reliance Industries (conglomerate), 5.5%; ICICI Bank, 5.2%; HDFC Bank, 5.1%; Tata Consultancy Services (information technology), 4.1%; Larsen & Toubro (conglomerate), 3.9%; and Tata Motors, 3.3%. The ETF has a 0.94% expense ratio. The country’s pro-business climate following the 2014 election of Prime Minister Narendra Modi has stimulated investment. Even so, the government continues to face difficulties getting Modi’s economic and political reforms through the upper house of parliament; his party holds a minority of seats in that chamber. The Indian economy’s long-term outlook remains positive. But its much-needed reforms may need years to take effect. iShares India 50 ETF is a hold. hold…