India ETFs
What county is the world’s most populous democracy? It is India. With its amazing growth rate and exciting demographic profile, this country has developed a booming economy and attracted large amounts of investment capital. Can we, as safe-options-sellers, use India ETFs to get in on the action? Let’s take a look at this extraordinary opportunity. We are talking here about a very large market. India is the second-most populous country on the globe. Some estimates indicate that its population will exceed China’s within two decades. Its fast growing economy has contributed to an increase in its workforce, which is dominated by relatively young people. These newly affluent folks are increasing their spending power, and propelling the demand for housing, electronics, transportation and other goods. India’s economy consists of a rich mix of service-sector, agricultural and industrial jobs. Some of India’s high-end niches are in the generic drug and biotechnology sectors. Of course, with this growing population and economy, the demand for energy has increased making India one of the world’s leading petroleum users. Indian businesses are nicely represented in the ETF space. Some of the more popular and diversified ETFs are Wisdom Tree India Earnings (EPI), the India Fund (IFN), iPath India ETN (INP), and Powershares India Fund (PIN). All of these have listed options, in either $1 or $5 increments, making these ETFs logical choices for covered call and cash-secured put potential. In addition, there are other, less diversified Indian ETFs that focus on smaller capitalization, currency (the Rupee), or infrastructure segments of the India economy. Most of these do not have associated listed options. As with all niche and sector opportunities, there are good times and bad times to be trading these instruments. Be cautious, study this fascinating market, do due diligence, follow your prepared trading plan, and don’t take huge bets.
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