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Fairfax India Holdings Corporation Subordinate Voting Shares (FIH.U)
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BMO MSCI India ESG Leaders Index ETF (ZID)
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iShares S&P India Nifty 50 Index Fund (INDY)
Q: I would like to make a small investment in India; now the most populated country on earth. I like ZID that has returned about 81% over the past 5 years, but the market cap is only $122M - is this ETF too small? I like FIH.U with a trailing P/E of 6.23 and market cap of $1.94B, but it has only increased 13% over the past 5 years - can FIH.U only be bought in USD? Would appreciate your thoughts on ZID and FIH.U, or perhaps you have another suggestion regarding investment in India.
Thanks!
Thanks!
5i Research Answer:
We would consider $122M 'big enough' for representation in most portfolios. FIH is largely a private equity fund, which can be good when it monetizes assets, but it can be quiet when it does not. It is only available in US dollars. We think it is OK but fees are high and it has not performed that well, as noted. We would prefer ZID. We also think INDY is a good ETF, focusing on the large caps of the country.