Is there an index fund for the Indian economy? (2018)


#1

I want to invest in India, but I don’t want to invest in ETFs because I think they’re dangerous…

Is there an index fund I can use to invest in India?


#2

There is no index fund for India specifically, even if there are plenty of ETFs…

I would however recommend Vanguard’s emerging markets index fund (VEIEX)

As of October 2017, the funds has about $88.70 billion under management from 4,101 different holdings…

The fund tracks the performance of the MSCI Emerging Markets Index Fund, which is weighted towards the largest companies in the largest markets:

• China

• South Korea

• Russia

• Brazil

Be warned though, it has extremely high volatility. In 2008 it lost 53% of its value and in 2009 it lost 76%.

Since 2010, the EM MSCI index has returned has returned 10% on average…

Country Weights

China: 30%

South Korea: 15%

Taiwan: 11.42%

India: 8.64%

Brazil: 6.86%

Other: 27.33%

Sector Weights

Information Technology: 33%

Financials: 23.1%

Consumer Discretionary: 10.51%

Materials: 7.18%

Energy: 6.76%

Consumer Staples: 6.34%

Industrials: 5.27%

Telecommunications: 4.68%

Real Estate: 2.72%

Utilities: 2.46%

Healthcare: 2.39%

you can read more about MSCI’s indexing process here:

https://www.msci.com/index-methodology


I think this index funds looks particularly interesting… emerging markets are the future…

If you are willing to stomach the risk and think long-term, an investment in this index and fund will work very well in the long-run…

Long: Vanguard’s Emerging Markets Index Fund (VEIEX)


#3

Definitely agree with you…

Emerging markets are a great play long-term…

If Buffett recommended sticking your entire pension in an S&P tracker, why couldn’t your do the same for this fund…

Today, America is no longer the strongmen it once was, the world is almost certainly shifting east!

Second that…

Long: VEIEX