Hi Dave,
Two very different sectors here although their charts/performance do bear a close resemblance through 2026.
BetaShares India Quality ETF (IIND): we wouldn’t say that the India ETFs are “breaking out” but they are bouncing well and the next 10% does look most likely on the upside.
India remains one of the world’s fastest-growing major economies, with GDP expanding 7.8% year-on-year in Q2 2026, comfortably ahead of expectations. Growth continues to be supported by manufacturing, services, infrastructure investment and rising domestic consumption, while October’s manufacturing and services PMI readings point to ongoing expansion.
India’s substantial foreign exchange reserves of almost US$700bn also provide an important buffer against external shocks.
- However, inflation remains elevated at 5.54%, prompting the Reserve Bank of India to lift interest rates to 5.5% in October, while a weakening rupee and persistent structural challenges in manufacturing remain headwinds.
Higher interest rates are weighing on equity valuations and borrowing costs, while rupee depreciation is reducing returns for foreign investors and adding to inflationary pressures, and leading to foreign investor outflows.
- We like the risk/reward towards Indian equities at current levels following the almost 30% correction.
VanEck Global Defence ETF (DFND): we touched on this ETF on Thursday, here, we are reticent to chase here post the Democratic landside win in the mid-terms but we would call it an accumulate in the $30-32 area it’s just not our top pick at the moment.
