« 8th NBER Neemrana Conference
Bangalore Real Estate: A “Rent or Buy” No Brainer »

Sensex & Nifty versus the US ETFs

It’s worthwhile to compare the performance of the BSE Sensex 30 & NSE Nifty 50 market indices with that of the ETF/ETNs traded in the US, specifically:

  • IIF -Morgan Stanley India Investment Fund
  • IFN - India Fund, Inc
  • INP - iPath MSCI India Index ETN

The 3-month charts below shows that while the Sensex & Nifty are up 5%, the INP (inspite of being denominated in dollars) is up almost 10% while the IIF & IFN are down more than 5%. The strength in the Indian rupee accounts for most of IIF & IFN’s underperformance. Wrt INP, I guess its recent launch has helped it garner a decent premium, for now at least.

Sensex & Nifty vs ETF for 3 months

 

The 6-month chart makes this more obvious - IIF & IFN were tracking the Sensex & Nifty up until December 2006, but since have diverged as the USD:INR rate moved from over 45 to below 44.

Sensex & Nifty vs ETF for 6 months

It’s also possible that IIF and/or IFN distributed dividends early this year, but I can’t find mention of it on Yahoo Finance.

This entry was posted on Wednesday, February 21st, 2007 at 12:07 pm and is filed under etf, sensex. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Related Posts:

  • NSE ETFs: Nifty BeES vs. Junior Nifty BeES
  • NSE Nifty-50: Price-volume correlations
  • Gold ETFs arrive in India
  • BSE Sensex-30 down 2000+ points, CNX Nifty-50 down 700+ points
  • Sensex up 900+ points, Nifty almost hit 5350 : What a whopper!
    •

    One Response to “Sensex & Nifty versus the US ETFs”

    1. Indian ETFs Says:
      February 12th, 2008 at 8:50 am

      Large dividends were distributed in late December in both funds.