Gaining Exposure to India’s Growth: The Franklin FTSE India ETF

For investors seeking a diversified stake in India's dynamic economy, the Franklin FTSE India ETF (FLIN) presents a compelling vehicle. This fund provides exposure to a broad basket of large and mid-cap Indian equities, positioning it as a key consideration amidst current market consolidation and following a recent monetary policy shift by the Reserve Bank of India (RBI).

A primary advantage of the Franklin FTSE India ETF is its competitive fee structure. With a Total Expense Ratio (TER) of just 0.19%, it stands out as a low-cost option compared to similar funds like the iShares MSCI India ETF (INDA) or the WisdomTree India Earnings Fund (EPI). This efficient cost management can significantly enhance net returns for investors over the long term.

Portfolio Composition and Sector Emphasis

The ETF tracks the FTSE India RIC Capped Index, holding a total of 277 securities. Its top ten holdings account for 34.21% of the fund's assets, indicating a moderate level of concentration risk. The portfolio has a pronounced tilt toward the financial sector, reflecting its pivotal role in the Indian market.
Key positions include:
* HDFC Bank Limited (7.13%)
* Reliance Industries Limited (6.60%)
* ICICI Bank Ltd (4.62%)

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Other significant holdings feature names such as Bharti Airtel, Infosys, and Mahindra & Mahindra. This allocation underscores the fundamental importance of financial services, information technology, and industrial sectors to the nation's economic landscape. The RBI's latest 25-basis-point rate hike, bringing the policy rate to 5.25%, could provide a tailwind for interest-sensitive constituents within the portfolio, including banks and automobile manufacturers.

Recent Performance and Trading Metrics

FLIN's performance data reveals a mixed picture across different time horizons. As of December 4, 2025, the ETF was down 1.45% for the week and 0.49% over the preceding month. However, it posted a gain of 2.47% over a three-month period and is up 1.86% year-to-date.

Trading activity has been robust, with an average ten-day volume of approximately 415,000 shares. Based on a Net Asset Value (NAV) of $38.25, this equates to an average daily trading turnover of around $16 million. The fund recently traded at a slight 0.07% premium to its NAV. Its tracking difference versus the index is -1.15%, indicating a minor underperformance relative to its benchmark over the measured period.