Despite People Pillar weakness and an Average Process Pillar, Nifty India Financials ETF gets enough right to retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy earns an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in quality exposure and yield exposure compared with category peers. Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And a low yield exposure is rooted in holding fewer stocks with high dividend or buyback yields -- instead, typically holding stocks in an early stage of development. The team managing this passive strategy earns a Low People Pillar rating. The strategy's parent organization still has a way to go to reach the industry standard, evidenced by a lack of inside investments from portfolio managers and a cohort of unseasoned portfolio managers. As a result, the firm obtains a Below Average Parent Pillar rating.

Analyst Rating

Premier Financial

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Nifty India Financials ETF earns an Average Process Pillar rating. The most substantial contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The size of the portfolio management team also contributes to the process. With four portfolio managers, the fund is reasonably well-resourced. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 0%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nifty Financial Services 25/50 Index (the "index").  The fund will normally invest at least 80% of its total assets in securities of the index or in depositary receipts representing securities of the index. The index is designed to measure the performance of companies in the Indian financial market, including banks, financial institutions, housing finance, and insurance companies and other financial services companies ("Indian Financial Companies"). 

 The portfolio is overweight in financial services by 73.6 percentage points in terms of assets compared with the category average, and its real estate allocation is similar to the category. The sectors with low exposure compared to category peers are consumer cyclical and technology, underweight the average by 13.2 and 11.4 percentage points of assets, respectively. The strategy owns 22 securities and is quite concentrated. In particular, 77.3% of the strategy's assets are housed within the top 10 holdings, versus the typical peer's 35.7%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 15% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

Exchange Traded Concepts’s team earns a Low People Pillar rating. The most important driver of the rating is the experience of the management team, which averages four years at this fund. The instability of management across its parent firm also detracts from the team. The firm's asset-weighted manager tenure of four years suggests it could do more to retain portfolio managers. The parent firm's five-year success ratio of 0% further holds the team back. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

People

Exchange Traded Concepts lags peer asset managers in a number of stewardship qualities, resulting in a Below Average Parent Pillar rating. Portfolio managers at Exchange Traded Concepts tend not to invest alongside their shareholders, detracting from the overall stewardship assessment. None of the firm’s assets are covered by an invested manager. A notable weakness of Exchange Traded Concepts is the inexperience of its longest-tenured managers compared with other asset managers. Managing capital through a full market cycle is a challenging prospect for seasoned managers, but with only four years of average asset-weighted tenure, there's cause for concern. The firm charges fees on its open-end and exchange-traded funds that are on par with category peers. On average, fund fees on its products fall in the middle quintile, giving it neither an advantage nor disadvantage compared with the competition.

Below Average

Parent

Nifty India Financials ETF

INDF is passively managed to select the top 20 Indian financial services companies by market capitalization.

CSOP FTSE China A50 ETF

Xtrackers Harvest CSI 300 China A-Shares ETF

Xtrackers Harvest CSI 500 China A-Shares Small Cap ETF

Xtrackers MSCI China A Inclusion Equity ETF

Avantis Emerging Markets Equity ETF

Avantis Emerging Markets Value ETF

VanEck Vectors Brazil Small-Cap ETF

Direxion Daily MSCI Brazil Bull 2X Shares

ProShares UltraShort MSCI Brazil Capped

Morgan Stanley China A Share Fund Inc

Direxion Daily CSI 300 China A Share Bull 2X Shares

VanEck Vectors ChinaAMC SME-ChiNext ETF

iShares MSCI China A ETF

WisdomTree China ex-State-Owned Enterprises Fund

Xtrackers MSCI Emerging Markets Hedged Equity ETF

Dimensional Emerging Markets Value ETF

Franklin Emerging Market Core

Direxion Daily Emerging Markets Bull 3X Shares

Direxion Daily Emerging Markets Bear 3X Shares

iShares MSCI Emerging Markets ETF

ProShares Ultra MSCI Emerging Markets

ProShares UltraShort MSCI Emerging Markets

Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF

Templeton Emerging Markets Fund

Global X Next Emerging & Frontier ETF

iShares MSCI Emerging Markets ex China ETF

WisdomTree India Earnings Fund

iShares MSCI EM ESG Optimized ETF

ProShares Short MSCI Emerging Markets

iShares MSCI Brazil ETF

iShares MSCI Brazil Small-Cap ETF

First Trust Brazil AlphaDEX Fund

First Trust Emerging Markets AlphaDEX Fund

Franklin FTSE Brazil ETF

Franklin FTSE India ETF

iShares MSCI Frontier 100 ETF

Freedom 100 Emerging Markets ETF

iShares Currency Hedged MSCI Emerging Markets ETF

iShares Core MSCI Emerging Markets ETF

Morgan Stanley India Investment Fund Inc

Columbia India Consumer ETF

iShares MSCI India ETF

Direxion Daily MSCI India Bull 2X Shares

iShares India 50 ETF

JPMorgan Emerging Markets Equity Core ETF

KraneShares MSCI All China Index ETF

KraneShares Bosera MSCI China A Share ETF

KraneShares SSE STAR Market 50 Index ETF

iShares ESG MSCI EM Leaders ETF

PIMCO RAFI Dynamic Multi-Factor Emerging Markets Equity ETF

First Trust India NIFTY 50 Equal Weight ETF

Invesco India ETF

First Trust RiverFront Dynamic Emerging Markets ETF

Hartford Multifactor Emerging Markets ETF

Schwab Emerging Markets Equity ETF

iShares MSCI India Small Cap ETF

SPDR Portfolio Emerging Markets ETF

Vanguard FTSE Emerging Markets ETF

WisdomTree Emerging Markets ex-State-Owned Enterprises Fund

Emerging markets continued to expand at a solid pace midway into the first quarter of 2024, supported by broad-based expansion across both manufacturing and service sectors.

Emerging Markets Growth Remains Solid Amid Intensifying Inflationary Pressures

WisdomTree Japan Hedged Equity Fund

WisdomTree Japan Hedged SmallCap Equity Fund

Global X MSCI Vietnam ETF

VanEck Vectors Vietnam ETF

For the first half of 2024, market analysts foresee India, Japan, and Vietnam as the most favorable markets in the Asia-Pacific region, as quoted on CNBC.

Analysts Bet Big On 3 Asia-Pacific Markets in 2024: ETFs in Focus

VanEck China Bond ETF

Global X China Biotech Innovation ETF

Global X MSCI China Communication Services ETF

Global X China Energy ETF

Global X MSCI China Health Care ETF

Global X China Industrials

Global X MSCI China Information Technology ETF

Global X China Materials ETF

Global X China Consumer ETF

Global X MSCI China Real Estate ETF

Global X MSCI China Consumer Staples ETF

Global X MSCI China Utilities ETF

Global X China Financials ETF

Loncar China Biopharma ETF

Xtrackers MSCI All China Equity ETF

Invesco China Technology ETF

iShares MSCI China Small-Cap ETF

iShares MSCI Hong Kong ETF

iShares MSCI Taiwan ETF

First Trust China AlphaDEX Fund

Franklin FTSE China ETF

Franklin FTSE Hong Kong ETF

Franklin FTSE Taiwan ETF

iShares China Large-Cap ETF

ProShares UltraShort FTSE China 50

SPDR S&P China ETF

KraneShares Bloomberg China Bond Inclusion Index ETF

KraneShares CICC China 5G & Semiconductor Index ETF

Kraneshares MSCI China Environment Index ETF

KraneShares Hang Seng Tech Index ETF

KraneShares MSCI All China Health Care Index ETF

KraneShares CSI China Internet ETF

iShares MSCI China ETF

Invesco Golden Dragon China ETF

Rayliant Quantamental China Equity ETF

Templeton Dragon Fund

ProShares Ultra FTSE China 50

Direxion Daily FTSE China Bear 3X Shares

Direxion Daily FTSE China Bull 3X Shares

ProShares Short FTSE China 50

India's potential for economic growth lies in its young population, business-friendly reforms, and technology sectors. To unlock this potential, India needs long-term policies to address structural constraints and short-term infrastructure investments.

Consider This: Is India The New China?

WisdomTree India ex-State-Owned Enterprises Fund

India's economy continues to experience rapid growth, with GDP expanding by 7.8% year-over-year in the April-June quarter of 2023. Industrial production in India rose by 10.3% year-over-year in August 2023, and the manufacturing sector showed strong operating conditions.

India's Manufacturing Output Surges While Inflation Pressures Ease

Market Vectors-Indian Rupee/USD ETN

India is the fastest-growing major economy this year. While others in the region look to be struggling, there are few clouds on the horizon for India.

Why India Is Bucking The Global Slowdown Trend

India's economy continues to show strong expansion in the first half of 2023, driven by domestic demand and robust manufacturing and services sectors. Foreign direct investment (FDI) inflows into India reached a record high of $85 billion in the 2021-22 fiscal year, with the manufacturing sector seeing a significant increase.

India's Economy Continues To Show Strong Growth In Mid-2023

INQQ The India Internet & Ecommerce ETF

India's investment landscape is attracting considerable attention and optimism, backed by the IMF's encouraging growth projections.

India ETF Investing: The Rising Star of Global Growth

Vaneck Digital India ETF

For many years, China dominated the emerging markets spotlight. At one point, it commanded a weight of nearly one-third of the market capitalization of major indexes.

Overlooked India ETFs Have Specific Angles

iShares MSCI Indonesia ETF

Morgan Stanley believes that Asia investing will likely beat the US and Europe in 2023, as quoted on CNBC.

Are Asia ETFs Better Bets Than US & Europe Funds in 2023?

Good growth momentum, strong credit growth, and a supportive budget environment provide a positive backdrop, though the Reserve Bank of India (RBI) still has work to do to tame inflation. Export growth is running at only about -6.5%YoY, a much smaller decline than the 20% fall we see in economies such as Korea, Taiwan, and Singapore.

India: Another Solid Year Ahead For The Economy

India has become an increasingly attractive location for multinationals across a wide range of industries. Latest data on key economic indicators continue to show strong momentum in many sectors of the economy.

India's Economic Growth Moderates In Last Quarter Of 2022

The India Rising story hit some turbulence last week, as one of its biggest corporate success stories, the Adani Group, was hit with a report from Hindenburg Research. While the revenue part of the story is one of almost unstoppable growth, it is worth noting that throughout its entire operating history, the Adani Group has had low operating margins, with the trend lines in the wrong direction.

Control, Complexity, And Politics: Deconstructing The Adani Affair

First Trust Chindia ETF

Proactive policy in 2022 leaves India in a good position to benefit from easier conditions in 2023. India's lesser reliance on trade with China provides a buffer.

India Will Do Better Than Most Of Its Asian Peers In 2023

India ETFs outperformed the S&P 500 this year. Many economists expect India equities to continue outperforming global peers in the initial phase of 2023, per media reports.

India ETFs Beat S&P 500 in 2022: What Awaits in 2023?

India is now the fastest-growing major economy in the world, surpassing China for the first time in a generation, with close to 8% growth. India's combination of a pro-business, reform-minded government; solid corporate governance; and overall management quality stands out within the emerging markets universe.

5 Growth Opportunities In India

India???s stock market has outperformed the S&P 500 in the past one month.

India ETFs Beat S&P 500: More Upside In the Cards?

India's demographic advantage puts the country in a position to be one of the fastest-growing global economies—if not the fastest. India remains synonymous with entrepreneurship, especially for technology firms.

India: The Next China

India celebrated the diamond anniversary of its independence; could this be the year to seek out a “diamond in the rough” there? When digging below top-level figures, certain subsectors—like private sector banking—has enjoyed growth above headline numbers.

Diamond In The Rough

The 2022/23 Union budget sets out the Indian government's estimate for the deficit in 2021/22 at 6.8% of GDP and projects the deficit falling to 6.4% in 2022/23. The importance of agriculture for India's inflation can't be overstated, and there is perhaps some good news lurking around the corner.

India: Banking On The Budget

India ETFs rebounded in the past one-month frame. These sector ETFs hold promise.

India Equities Rebound: 4 Sector ETFs to Play

A lot has been happening in the financial sector of India with big-ticket M&As hogging the spotlight.

Should You Buy India Financials ETF (INDF) on M&A Boom?

The Indian economy offers a great growth engine. Most importantly, retail inflation in the United States is higher than India for four months for the first time in three decades.

3 Sector ETFs to Play 7%+ Growth Rate of India

Xtrackers MSCI EAFE ESG Leaders Equity ETF

SPDR MSCI Emerging Markets Fossil Fuel Free ETF

Xtrackers MSCI Emerging Markets ESG Leaders Equity ETF

FlexShares STOXX Global ESG Select Index Fund

Columbia International ESG Equity Income ETF

HDFC Bank Limited

NuShares ESG Emerging Markets Equity ETF

iShares MSCI Global Impact ETF

In this research piece, we discuss the possible pathway to India's environmental goals, as well as select investment opportunities that reflect ongoing progress across the ESG landscape. India fares well in disclosures with 97% of MSCI India constituents publishing sustainability reports.

Harnessing Growth: India's Transition Reflected In Sustainability Commitment

iShares MSCI Australia ETF

Franklin FTSE Australia ETF

Australia has been in the news lately over its aggressive response to the pandemic. But the bigger Down Under story might end up being interest rates. With inflation soaring, however, it became harder to manage the country's increasingly unruly yield curve, and finally, the RBA just gave up and let the market decide how expensive short-term money should be.

Spiking Australian Interest Rates Are A Glimpse Of The Global Future

India's stock market is hovering at a record high. Lower COVID-19 cases and pent-up demand have acted as the tailwind to the Indian market.

India ETFs Rallying Hard: Is Any Upside Left?

News for Nifty India Financials ETF ETF (INDF)