This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

India Moves Beyond the 'BRICs' and Its ETFs Are Hot Again

Stocks in this article: EPI INDA

Economies tend do what they do in spite of the figureheads at the helm. Factors like economic cycles, demographics and global interest rates have a much more powerful effect on growth. India's economy will be a good bet for world-leading growth regardless of who's in charge.

But on the margin, things like a new goverment can matter. To the dispassionate American investor, these trends are unquestionably a good thing. Modi's policies will affect the tone and the psychology of Indian consumers and businesses.

There are several ways to play these new trends.

The largest India ETF, the WisdomTree India Earnings Fund (EPI), sports a P/E ratio just over 11x. That's pretty cheap for an economy that will be among the fastest growing in the world with the youngest, most attractive demographics, and a pro-growth nationalist at the helm.

The iShares MSCI India Index Fund (INDA) contains a slightly different portfolio, with an exclusive focus on large cap stocks. It's slightly more expensive at 14.5x earnings. But keep in mind that some of the stocks within these ETFs are trading with temporarily depressed earnings as India's economy has slowed down and flirted with recession in recent years.

Investors with strong stomachs can play India via small caps. The EGShares India Small Cap ETF (SCIN) trades at 9.6x earnings and 1.05x book value. That's cheap, folks. And that's after the fund is up 36% since early May. It'll be a volatile ride and more tightly leveraged to India's overall economic performance, but there's huge upside potential here.

American investors are severely underweight global markets. When it comes to picking and choosing the best of breed, India is currently worth a look.

At the time of publication the author had no position in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

>>Read more: Adidas Looks to Beat Nike for Soccer Dominance in 2014 World Cup

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs