Canadian ETF got India exposure - Stocktrades Canada

Hi there,

As a strategic move, I would like to have some (<5%) exposure to the growing India market, which also withstand last years bear markets, as a long play.
Do you have any recommendations for a relatively large, low MER, well diversified, and hopefully currency hedged, India ETF ?
I heard of ZID, XID, any preference between the 2 or others?

Thanks!

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Asked on January 22, 2023 12:24 pm

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Private answer

Hey there,

XID and ZID are the two lone Canadian ETFs that are India pureplays. They are slightly different.

XID gives exposure to large caps while ZID give exposure to both large & media caps. Furthermore, ZID is about twice the size of XID in terms of AUM ($106M vs $55M) and has a lower expense ratio (0.72% vs 1.05%). When deciding between two ETFs I usually look at holdings first (which I can't really comment on since I am not familiar with the Inda market) and then look at AUM & Fees. In a market like this, I'll usually go for the larger ETF as there is less likelihood of liquidation.

You could also look at an emerging market ETF like VEE, ZEM or XEC which all have fees in the 0.25% range and have the following exposure to India
VEE: 18%
ZEM: 15%
XEC: 15%

Of note, both ZEM and XEC tracks the MSCI Emerging Markets Index.

Mat

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Posted by Mathieu Litalien

Answered on January 23, 2023 4:57 am

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