"India's economy is projected to grow between 6.6% and 7.4% in 2026, outpacing most developed markets and positioning the country as a compelling alternative to China for investors seeking emerging market exposure. For those wanting a simple way to capture this growth, iShares India ETF (NYSEARCA:INDA) offers broad access to Indian equities through a single ticker. But recent performance raises questions about whether this ETF delivers on India's promise."
"The iShares India ETF holds 165 companies spanning India's equity market, from financial giants like HDFC Bank and Reliance Industries to industrial and technology firms. With $9.6 billion in assets and a 0.62% expense ratio, INDA provides liquid, cost-efficient exposure to a market that many investors can't easily access otherwise. The ETF's return engine is straightforward: capital appreciation from underlying Indian stocks."
"With financials comprising 29% of holdings and consumer discretionary another 12%, INDA essentially bets on India's growing middle class and expanding credit markets. These sectors benefit directly from rising incomes, urbanization, and digital financial services adoption. However, INDA's 10-year total return of 117% significantly trails the S&P 500's 241% over the same period. Even more concerning, the ETF gained just 1.4% over the past year while U.S. markets rose 18%."
India's economy is projected to grow between 6.6% and 7.4% in 2026, offering faster expansion than most developed markets. iShares India ETF (INDA) holds 165 companies across financials, consumer discretionary, industrials and technology, with $9.6 billion in assets and a 0.62% expense ratio, providing liquid access to Indian equities. The ETF relies on capital appreciation, with financials representing 29% and consumer discretionary 12%, reflecting a bet on a growing middle class and expanding credit markets. Despite macro growth, INDA's 10-year return of 117% trails the S&P 500's 241%, and recent one-year performance lagged U.S. markets, exposing concentration and geopolitical risks.
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