India: Bridging the allocation gap with passive market access - ERP Spain.com - España y América Latina

India has become the darling of EM investors after China continued to disappoint. India is emerging as a dominant player with its vibrant investment environment, strong demographics, accelerating urbanisation and rising affluence. Already today, this dynamic shift is calling for portfolio adjustments. Over the past 10 years, Indian equity markets have outperformed the MSCI EM index by around 7% per year. As India approaches a benchmark weight of 20% in MSCI EM index, this strong performance is having widespread effects on allocation realities. In 2024, India's growing influence will extend beyond equities. The country is poised to join JPMorgan's GBI-EM Global Diversified Index, one of the most widely followed EM local benchmarks, and Bloomberg's EM Local Index in June 2024 and January 2025, respectively. This cements India's position as an important component of any diversified portfolio. Passive implementation can address under-representation. With a local EM index weighting of 10%, any underweight allocation to Indian assets could be a significant risk from a diversification and carry perspective, as 10Y yields remain above 7%. ETFs and other passively managed solutions offer investors the building blocks to fill this gap in their allocation before it even arises. These vehicles offer an efficient route to gain exposure to the Indian market, regardless of the current allocation structure. Presented by: – Fabian Becher – Head of Chief Investment Office, DWS – Lukas Ahnert, Senior Product Specialist - Xtrackers Index Strategy & Analytics, DWS – Sebastian Schiele / Head of Passive Mandates Sales EMEA & APAC, DWS Moderated by Brendan Maton