Invesco India ETF (PIN) is a Perfect Vehicle to Obtain Exposure to Entire Indian Stock Market
March 4, 2024
The Invesco India ETF focuses on high-quality Indian stocks with high dividend yields and aims to deliver alpha on a risk-adjusted basis. The Invesco India ETF (PIN) has the power to assess the entire Indian stock market. Unlike another popular India-focused ETF INDA, PIN focuses on style factors because it articulates on high-quality companies with high dividend yields, at the same time (AKA two-in-one). In this way, this ETF promises to deliver Alpha on a risk-adjusted basis.
Favorable macroeconomic variables in India, such as lower debt-to-GDP ratio and higher expected GDP growth, support PIN's prospects. India’s nominal GDP is expected to grow by 6.5% this year, which is higher than the lower limit acceptable to emerging market investors (4%).
In fact, India's GDP is expected to exceed that of other BRICS countries by 2028, providing justification for shifting allocations from other emerging markets to India. The fund's holdings include overweight exposure to cyclical stocks, but a focus on quality stocks reduces risk. Additionally, it has attractive valuation metrics compared to other ETFs.
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