India’s reforms unfold slowly

Article Excerpt

ISHARES INDIA 50 ETF $30.96 (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. It began trading in November 2009. The fund’s top holdings are: ITC Ltd. (conglomerate), 6.9%; Housing Development Finance, 6.8%; Infosys (information technology), 6.2%; Reliance Industries (conglomerate), 6.0%; HDFC Bank, 5.4%; ICICI Bank, 5.1%; Tata Consultancy (information technology), 4.0%; and Larsen & Toubro (conglomerate), 3.8%. 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 growth. Even so, the government continues to face difficulties getting economic and political reforms through the upper house of parliament; Modi’s party holds a minority of seats in that chamber. The Indian economy’s long-term outlook remains positive. But its much-needed reforms require more time to take effect. iShares India 50 ETF is a hold. hold…