Portfolio breakdown for India-focused ETFs
In a recent article, we discussed how tax and policy concerns caused foreign investors to heavily sell their stakes in the Indian capital markets. In this series, we’ll delve into an analysis of the major sectors held by India-focused exchange-traded funds and judge whether the outlook for these sectors is attractive enough to justify investment.
The graph below shows the major holdings of the Wisdom Tree India Earnings Fund (EPI), the iShares MSCI India ETF (INDA), and the PowerShares India ETF (PIN). The three funds are primarily overweight in India’s financials, information technology, energy, and healthcare sectors.
Performance of ETF constituents
The table below shows a summary of the performance of the major constituents held by the above ETFs. ICICI Bank (IBN) displayed the poorest performance in terms of year-to-date (or YTD) total returns, a loss of -8.74%. The mixed results include software majors Infosys (INFY) and Wipro (WIT), which exhibited contrasting performances.
Additionally, while ICICI Bank experienced a total return of -8.74%, HDFC Bank (HDB) experienced a significant gain of 13.22% since the beginning of 2015.
In this series, we will focus on individual Indian firms in different sectors and analyze the major performance drivers for each. In an upcoming series, we will focus on the performance and outlook for India’s healthcare sector.