3 ETFs Influenced By India’s Inflation

Despite witnessing stellar economic growth over the past few years, rising prices could put a damper on India’s future and its exchange traded funds (ETFs).

In general, the global commodities market has witnessed a slight pull back over; however, commodity prices continue to remain elevated putting strain on the consumer. On the consumer side, this drastic increase in prices has been led by a surge in food prices which has been brought on by pure supply and demand forces. Although India is expected to witness a relatively decent annual rainfall building up short-term supply of food and agriculture-based products, weak storage facilities and infrastructure will likely negate any benefits that the nation could reap from increased production.  Read more of this post

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India Infrastructure ETF Destined To Shine

India’s economy is growing at the second largest pace amongst the world’s major nations and is likely to continue to do so as the nation is abundant with an intelligent and young labor force.  Furthermore, this growth is shinning a ray of light on the nation’s infrastructure sector and boosting the appeal of the EGShares India Infrastructure ETF (INXX).

According to a recent article in The Wall Street Journal, numerous private equity firms have recognized this appeal and have turned their attention to the emerging market sector.  In fact, the article indicates that there were 48 private equity deals in infrastructure worth an estimated $3 billion last year, with another 38 infrastructure funds currently waiting to invest in India’s infrastructure.  Read more of this post

9 ETFs To Play Currency Debasement

As developing nations continue to implement loose monetary policies, keep interest rates low and boost money supply, a nation’s debt and currency debasement should me of much concern. 

Most recently, a study indicated that the U.S. national debt has ballooned nearly 12 fold over the last 30 years.  Additionally, over this same time span the ratio of debt to GDP has gone from nearly one-third to 85%.  During this time of exploded debt, GDP has only expanded 5.3 times, indicating that debt is growing at twice as fast as the U.S. economy.  Similar trends have been seen in Europe, in particularly Greece, Spain and Portugal.

Some concerns of this exponential growth in debt include hyperinflation, as a result of printing more currency, a decline in the value of a nation’s currency, better known as currency debasement, and increased costs of borrowing, which make it difficult to chip away at deficits. Read more of this post

Three Reasons To Consider Indian ETFs

As emerging market economies continue to draw attention and appeal and are likely to remain at the forefront of global economic growth in the future, India and the exchange traded funds (ETFs) that track the Asian nation have long-term appeal and for good reason.

The International Monetary Fund (IMF) expects the Indian economy to grow by 8.5% this year and to continue its expansion in the coming years.  One reason India is expected to continue to witness healthy economic growth is its demographics.   To put it bluntly, India is blessed with a young and capable workforce that is relatively well-educated and skilled in the English language.  Furthermore, the Economist states that India’s dependency ratio, which is the proportion of children and old people to working age adults, is one of the best in the world and will remain so for a generation further enabling the country to surpass the growth of its rival emerging markets over the next quarter century. Read more of this post

5 ETFs To Play Australia

Over the last century, Australia has outperformed its counterparties in the developed world, while offering one of the lowest volatilities to investors. As for the future, the Land Down Under is expected to continue its growth, providing returns and the path to opportunity for some. 

A major reason that the future remains prosperous for Australia is due to its close ties with Asia.  According to the International Monetary Fund (IMF), exports to China and India have been growing at a rate of 18%-19% per year and are expected to continue to grow.  As China and India continue to emerge as global economic powerhouses, Australia will likely continue to reap the benefits.  In fact, Asia as a region is expected to witness economic growth of nearly 50 percent over the next five years and account for more than a third of total global output.  Read more of this post

Asia Could Boost Solar ETFs

Nearly five months ago, the Asian Development Bank started a major drive to promote the use of solar power throughout the continent which could eventually lead to positive price support in the Guggenheim Solar ETF (TAN) and the Market Vectors Solar Energy ETF (KWT).

Under this initiative, the Asian Development Bank aims to put in place solar power projects with a total capacity of 3,000 megawatts by 2013, pushing capacity to six times what it currently is.  The solar move is especially taking place in India, where the government has committed $20 billion to its solar program in hopes of having 20,000 megawatts of grid-connected solar energy by 2022 and nearly 200 megawatts of off-grid solar energy by 2013.  Read more of this post

A New ETF To Play India’s Growth

As investors continue to reap the benefits of growth in emerging markets, ETF provider, Van Eck, recently announced the launch of the Market Vectors India Small-Cap Index ETF (SCIF) giving investors yet another way to access the emerging nation.

SCIF seeks to replicate the performance of the Market Vectors India Small-Cap Index which provides exposure to publicly traded companies that are headquartered in India or that generate the majority of their revenues in the country.  Additionally, the index utilizes a float-adjusted modified market capitalization weighting methodology to determine holdings.   Read more of this post