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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: Hi 5i,
I have a small position in Fairfax India holdings. I have made a gain but disappointing for the length of time I have had it. I can still be patient for possibly 5 more years or longer. Would you recommend holding this, or consider ETF's of India holdings that you had recommended in March of this year (ZID or INDY) or other ETF?
Should be on the conservative side of investing.
Thank you for the great service
I have a small position in Fairfax India holdings. I have made a gain but disappointing for the length of time I have had it. I can still be patient for possibly 5 more years or longer. Would you recommend holding this, or consider ETF's of India holdings that you had recommended in March of this year (ZID or INDY) or other ETF?
Should be on the conservative side of investing.
Thank you for the great service
5i Research Answer:
For exposure to long-term growth in India's market we would be more comfortable with an ETF. FIH.U should perform better in the future when it's asset are further monetized, however, it charges high fees and the performance in prior years has been weak. FIH.U largely invests in private equity in India which is exposure that most ETFs do not offer. We think an ETF is an easier option for a further market rally in India and the lower fee along with broader exposure makes it more conservative. We like FIH.U but it is riskier and investor may need to wait a bit here. We would not really consider it 'bad' but its private-equity focus can take longer to see monetization, and in a short-term India rally ETFs will likely outperform.