India’s Economic Momentum Powers FLIN ETF Growth

India's sustained economic expansion is creating compelling opportunities for investors, with the Franklin FTSE India ETF (FLIN) positioned to capture this growth. According to projections from Moody's, India is expected to maintain its status as the fastest-growing G-20 economy through 2027, with GDP growth forecast at 7.0% for 2025. This robust economic performance is fueled by strong domestic consumption and strategic infrastructure investments across the country.

Tracking the FTSE India RIC Capped Index, FLIN holds 277 securities, though its portfolio demonstrates significant concentration in market leaders. The top ten holdings collectively account for 33.77% of the fund's assets, with the largest positions including:

• HDFC Bank (6.86%)
• Reliance Industries (6.32%)
• ICICI Bank (4.48%)
• Bharti Airtel (3.59%)
• Infosys (3.33%)

Financial services constitute the dominant sector allocation at 28.04%, followed by consumer cyclical stocks at 11.66% and technology companies representing 10.15% of the portfolio. This focused approach provides targeted exposure to India's key economic drivers while presenting potential concentration risks.

Should investors sell immediately? Or is it worth buying Franklin FTSE India ETF?

Recent Performance Metrics

FLIN's recent performance reveals varied results across different time horizons. The fund has delivered a 3.9% return over the past month, with three-month gains standing at 2.6%. Year-to-date performance shows a 2.4% advance, though the one-year return remains slightly negative at -0.6%.

Trading activity has been moderate, with recent volume reaching 99,570 shares—significantly below the 416,100-share average. Despite this, the ETF has attracted substantial investor interest, recording net inflows of $143.65 million in recent weeks.

Competitive Landscape Analysis

The Indian ETF market features several established competitors, including the iShares MSCI India ETF (INDA) and the iShares India 50 ETF (INDY). Investors considering Indian market exposure face a strategic decision between FLIN's concentrated approach and the broader diversification offered by competing funds. This choice ultimately depends on whether investors prefer targeted sector exposure or wider market representation within their emerging markets allocation.