India-focused ETFs like the WisdomTree India Earnings Fund and the WisdomTree India Hedged Equity Fund may present a buying opportunity after the MSCI India Index fell 8.52% year-to-date, even as the broader MSCI Emerging Markets Index gained 26%. Morgan Stanley’s Chief Asia Economist Chetan Ahya highlighted strong banking system credit growth of 17.7% year-on-year and a 27% rise in passenger vehicle sales in May, both supportive of the financials-heavy WisdomTree funds, which each allocate 24% to that sector. Morgan Stanley’s head of India research Ridham Desai noted that India’s long-term terminal growth remains superior to many other countries, making the current underperformance a potential entry point for patient investors. The two WisdomTree ETFs have outperformed the MSCI India Index so far this year.
WisdomTree Inc.Article highlights strong credit growth and auto sales supporting India ETFs, which may boost WisdomTree's AUM and fee revenue.