Neither fund offers much yield to help investors endure volatility. EPI reports a distribution yield of 1.63% and INDY comes in at 0.56%. Another way in to India is through the EG Shares India Consumer ETF ( INCO). Consumer spending accounts for 70% of UD GDP but only 60% in India. Per capita income in India is slightly greater than $1200 per year with estimates that it will grow to $4200 by 2020. The combination of increasing as a percentage of GDP and income growth would be a powerful long term catalyst in INCO's favor but there are a lot of variables between here and a more prosperous Indian consumer.
A time of heightened uncertainty and skepticism often make for a good entry point into a stock or fund and while there is reason for long term hope for India the nearer term is less certain. An investor interested in India right here needs to understand they will be in for a lot of volatility and need to be ready to take a large gain if it comes or remain disciplined to their preferred exit strategy. At the time of publication the author held no positions in any of the stocks mentioned.Follow@randomrogerThis article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
In trading on Monday, shares of the Indonesia Index ETF entered into oversold territory, changing hands as low as $23.20 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100.