India ETFs Miss Their Cue as iShares Steps Offstage

$1.8 billion pulled out in four weeks, as investor focus moves towards new performers in China and Hong Kong

- SAMIE MODAK

iShares MSCI India ETF — the most popular exchange-traded fund (ETF) for India exposure — has led the latest retreat by India-focused funds. Investors have pulled out more than half a billion dollars from this US-listed ETF, which manages close to $10 billion. Meanwhile, WisdomTree India Earnings Fund and Amundi MSCI India II saw outflows of $225 million and $103 million between July 30 and August 20, according to data compiled by Elara Capital.

Indian markets are facing their sharpest wave of redemptions in eight months, even as Chinese equities attract fresh inflows.