Global ETFs exposure in India

Despite the general outflows of foreign portfolio investors (FPIs) over the past year, international exchange-traded funds (ETFs) have consistently grown their exposure to Indian equities. According to data published by IIFL Securities, India has received inflows from passive FPI money totaling US$ 7.3 billion in 2021 and US$ 1.6 billion in 2022. 

The assets under management (AUM) of passive FPIs have risen by around 8% during the past 12 months, from $59 billion in August 2021 to $64 billion in August 2022. India received $45 billion in foreign ETF allocation in August 2020. Up until August, FPIs had sold Indian shares valued at $14.4 billion in 2021 and $24.5 billion in 2022.

Black Rock has continually extended its exposure to India among foreign funds and currently controls close to 50% of the FPIs ETF asset under management in India. 

India’s weight in the Schwab Emerging Markets Equity ETF was also raised from 14.8% to 17.3%. For instance, Indian equity exposure in exchange traded funds (ETFs) is based on the MSCI India Index and MSCI Emerging Markets Index.