BMO India Equity Hedged to CAD ETF (ZID.TO)

He loves India. The average age of the workforce is 28 and you have to buy a house, get married and have kids. China had a one child policy and it destroyed their demographics. He likes India over China for that reason. You should have half to 1 or two percent of your portfolio in India.

Thinks India’s Prime Minister has had some great ideas, and there is a rush of money going over there, but he doesn’t think any of these things have actually been done yet. Doesn’t think it is overpriced, but considers it a speculative buy.

(A Top Pick March 11/15. Down 9.36%.) This has been a little soft over the past month, but he has owned this along with an individual Indian stock for the past year. Generally speaking the government is pretty supportive of the economy and the stock market. He also likes the formation. This is in a long-term uptrend, and he views a recent pullback is a buying opportunity. The 200 day moving average has not been cracked.

This is the India ETF that he uses. He doesn’t use it often, but does use it. He remains positive on India. It is probably the only exception he has in the emerging-market space where his concerns about stalling growth is a little more muted.

Chart shows a strong upward trend from late 2013. Recently pulled back a little and is an opportunity within the trend that people ought to look at. India has been very accommodative of business.

There has been a lot of enthusiasm about India’s new prime minister, and that he will be freeing up a lot of the capital restriction rules with much more open markets. The prices of these things have really gone through the roof in anticipation, but he doesn’t think it is being done yet. This is not something he would want to go into right now.

Hit a peak of around $21 and had expected it to come off a little, which it has. He has his 1^st tranche in there for one client class, and is waiting to buy it for the 2^nd client class. Chart shows a long downward and upward curve from 2011, which could become a cup and handle. He would like it to stay above the $17 level.

They are un-hedging because the demand from investors is for un-hedged ETFs. Instead of investing in the local securities, they invest in depository receipts. It is not as diversified as those that don't restrict themselves to depository receipts.