Investors seeking momentum may have iPath MSCI India Index ETN on radar now. The fund recently hit a new 52-week high. Shares of INP are up approximately 19.8% from their 52-week low of $60.35/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
INP in Focus
INP gives exposure to Indian equities and and stands out from the other funds focusing on this region by virtue of being an exchange traded note. Financials, Information Technology and Consumer Cyclical are the top three sectors, with 24%, 14% and 13% allocation, respectively. It charges 89 basis points in fees per year and has top holdings in Housing Development Finance Co, Reliance Industries Ltd and Infosys Ltd with 8.77%, 7.51% and 6.51% allocation, respectively (as of July 26, 2017) (see all Broad Emerging Market ETFs here).
Why the Move?
Lately, the Indian economy has been gaining a lot of traction, as inflation hit a record low, thus increasing chances of a rate cut by Reserve Bank of India (RBI). Moreover, Nifty 50 crossed the 10,000 psychological mark for the first time this week. This is primarily being attributed to strong earnings performance and high inflow of foreign funds. Per National Securities Depository Limited, Indian equities have seen foreign investment to the tune of Rs 560 billion so far this year.
More Gains Ahead?
Currently, INP has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Moreover, it has a weighted alpha of 24.3 and a moderate 14-day volatility of 10.2%. So, there is a promising outlook ahead for those who want to ride this surging ETF a little further.
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India Equity ETN (INP) Hits New 52-Week High
Investors seeking momentum may have iPath MSCI India Index ETN on radar now. The fund recently hit a new 52-week high. Shares of INP are up approximately 19.8% from their 52-week low of $60.35/share.
But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.
INP in Focus
INP gives exposure to Indian equities and and stands out from the other funds focusing on this region by virtue of being an exchange traded note. Financials, Information Technology and Consumer Cyclical are the top three sectors, with 24%, 14% and 13% allocation, respectively. It charges 89 basis points in fees per year and has top holdings in Housing Development Finance Co, Reliance Industries Ltd and Infosys Ltd with 8.77%, 7.51% and 6.51% allocation, respectively (as of July 26, 2017) (see all Broad Emerging Market ETFs here).
Why the Move?
Lately, the Indian economy has been gaining a lot of traction, as inflation hit a record low, thus increasing chances of a rate cut by Reserve Bank of India (RBI). Moreover, Nifty 50 crossed the 10,000 psychological mark for the first time this week. This is primarily being attributed to strong earnings performance and high inflow of foreign funds. Per National Securities Depository Limited, Indian equities have seen foreign investment to the tune of Rs 560 billion so far this year.
More Gains Ahead?
Currently, INP has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Moreover, it has a weighted alpha of 24.3 and a moderate 14-day volatility of 10.2%. So, there is a promising outlook ahead for those who want to ride this surging ETF a little further.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>