Exchange-Traded Funds (ETFs) have opened up new avenues for investors looking to diversify their portfolio across geographical regions. In this feature, we will explore a detailed comparison between two such unique ETFs: NLD (Northland Wealth) focused on the Netherlands, and INN (Invesco India Nifty 50 ETF) offering exposure to the Indian market. This article will cover various facets including the tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
NLD and INN are ETFs that offer regional exposure to investors, albeit in vastly different markets. While NLD focuses on the more established Dutch market, INN is geared towards the emerging Indian economy. Understanding the core differences in focus will give you an edge in choosing the right ETF for your portfolio.
NLD is managed by Northland Wealth, a firm that specializes in wealth management services. INN, on the other hand, is a product of Invesco, a global investment giant. NLD aims to replicate the performance of the MSCI Netherlands Investable Market Index, whereas INN seeks to track the Nifty 50 Index of the National Stock Exchange of India. These differing objectives reflect the unique investment philosophies of their respective issuers.
NLD overlap NLD VS INN: A Comprehensive Comparison of ETFs
NLD's portfolio predominantly leans towards Financials, Health Care, and Consumer Goods, with companies like ING Group and ASML as its top holdings. INN concentrates on the Financials, Energy, and Information Technology sectors, featuring top companies like Reliance Industries and Infosys. Knowing the sectors and top holdings can help investors tailor their investment strategy according to their risk tolerance and goals.
NLD, being focused on a developed European market, generally has a moderate Asset Under Management (AUM). INN, which targets an emerging market, often has a fluctuating but substantial AUM. Differences in capitalization and AUM can significantly affect liquidity and investment risk, factors you should consider before making an investment decision.
NLD uses a passive strategy to closely track the MSCI Netherlands Investable Market Index, offering concentrated exposure to the Dutch market. INN aims to provide investors with a chance to participate in the Indian equity market by tracking the Nifty 50 Index. The methods of tracking and the type of market exposure they offer can greatly influence your investment outcomes.
Both NLD and INN present intriguing, yet contrasting, investment opportunities. Whether you are inclined towards the stability of a developed market like the Netherlands or the growth potential of an emerging market like India will guide your choice. For investors who want to delve deeper, ETF Insider is an invaluable tool, offering comprehensive insights into ETF holdings, correlations, overlaps, and much more, all through an easy-to-use app.
Disclaimer: This article does not provide any investment advisory services.
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