(INDA) iShares MSCI India - Ratings and Ratios

The iShares MSCI India ETF (INDA) is designed to track the performance of large- and mid-capitalization Indian companies. It invests at least 80% of its assets in securities from its underlying index or in investments that closely mirror those securities. This approach ensures the fund stays aligned with the market it aims to represent.

The underlying index, the MSCI India Index, captures the equity performance of companies representing the large- and mid-cap segments of the Indian market. This includes firms like Reliance Industries, HDFC Bank, and Infosys, which are pillars of Indias economy. The fund is categorized as non-diversified, meaning it can concentrate its holdings in a smaller number of securities, which may increase risk but also allows for more targeted exposure to Indias growth story.

With over $8.5 billion in assets under management, INDA is one of the largest and most liquid India-focused ETFs available to U.S. investors. It is domiciled in the United States and listed on the BATS exchange, making it easily accessible to domestic investors. The funds expense ratio of 0.68% is competitive for emerging market ETFs, though higher than some broader market funds.

Historically, INDA has demonstrated a tracking error of around 1%, indicating that it closely follows its underlying index. Its portfolio spans approximately 100 holdings, with a weighting toward financials, technology, and consumer discretionary sectors. This diversification across sectors helps mitigate risk while still capturing Indias broader economic growth.

Investors should note that while INDA provides exposure to one of the worlds fastest-growing major economies, it also comes with risks. These include currency fluctuations, as the Indian rupees performance against the U.S. dollar can impact returns, as well as the broader volatility associated with emerging markets.