In This Article:
iShares India 50 ETF INDY is probably on the radar for investors seeking momentum. The fund just hit a 52-week high and moved up 29.7% from its 52-week low price of $43.60/share.
Are more gains in store for this ETF? Let us take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed.
INDY in Focus
The Nifty 50 Index measures the equity performance of the top 50 companies by free float market capitalization whose equity securities trade in the Indian securities markets. The product charges 89 bps in annual fees (see: all Asia-Pacific (Emerging) ETFs).
Why the Move?
India's potential for growth makes it an attractive choice for investors. Overseas investors are pouring money into Indian stocks all over again, indicating a strong return to the $5 trillion market after a brief pause earlier this year due to election-related uncertainty, according to Bloomberg data, as quoted on Economic Times.
The latest Fed rate has proved to be another tailwind for the India stock and exchange-traded fund (ETF) investing. The likelihood of the falling U.S. dollar is a plus for the emerging markets like India. Several India ETFs have been hovering around a 52-week high.
More Gains Ahead?
Currently, INDY has a Zacks ETF Rank #3 (Hold) and Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 25.23 (as per Barchart.com), which gives cues of a further rally.
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iShares India 50 ETF (INDY): ETF Research Reports