The United States and India are negotiating a trade agreement with a goal of reaching $500 billion by 2030. As of mid-April 2026, no official deal has been finalized. A successful agreement could lower U.S. tariffs on Indian goods and enhance trade in industrial, agricultural, and tech sectors. India’s economy is projected to grow by 6.6% in fiscal 2027, despite anticipated challenges due to rising oil prices amid the ongoing Iran war.
Investors are exploring exchange-traded funds (ETFs) to gain exposure to Indian equities, with notable options including the WisdomTree India Earnings Fund (EPI) and iShares MSCI India Small-Cap ETF (SMIN). EPI has a unique earnings-weighting strategy and an expense ratio of 0.84%, while SMIN focuses on small-cap stocks with an expense ratio of 0.74%. Both funds have faced varying returns, with SMIN recently gaining 10% in the past month despite a 4% decline over the last year.
The WisdomTree India Hedged Equity Fund (INDH) offers an alternative approach with a currency hedge strategy, aimed at reducing the impact of fluctuations between the U.S. dollar and the Indian rupee. INDH features a narrower portfolio and an expense ratio of 0.64%. Investors are advised to consider these options as negotiations for a significant trade agreement progress.
