It has been a challenging year for most emerging markets so far. Emerging markets that rely heavily on commodities export have been struggling due to a slowdown in China, which is the main market for raw materials. China itself has been struggling to find a balance between maintaining near-term growth and transitioning its economy from export and investment-led growth to consumer-led growth. India has been an exception though.
The Indian economy is now the world’s fastest growing major economy. More importantly, the economy’s fundamentals are stronger than most other emerging markets. Over the past one month, India’s benchmark S&P BSE Sensex Index has gained more than 6%. Canadian investors can exposure to Indian markets through the BMO India Equity Index ETF (TSX: ZID).
ZID has been designed to replicate, to the extent possible, the performance of the BNY Mellon India Select DR Index (Index), net of expenses. The BNY Mellon India Select DR Index (Index) is comprised of a select group of American and global depositary receipts traded on the New York Stock Exchange (NYSE), NYSE Amex, NASDAQ, and London Stock Exchange which are domiciled in India. The ETF has returned more than 8% over the last one month.
