FTIN39 brings Indian stocks to Brazil with a significant weight in banks

Credit: iStock

FTIN39 is a certificate traded in Brazilian reais on B3 and backed by shares of the Franklin FTSE India ETF, listed in the United States under the ticker FLIN. The fund invests in large- and mid-cap Indian stocks and seeks to track the FTSE India Capped Index before fees and expenses. It offers exposure to one country through companies operating across several sectors.

Understanding the distinction between the BDR and the underlying ETF matters. FTIN39 is the certificate traded in Brazil; FLIN is the fund that holds the stocks. FLIN’s U.S. dollar returns are therefore not the same as FTIN39’s returns in Brazilian reais. Currency movements and the BDR’s own trading conditions also affect its local price.

The index holds many stocks, but its largest companies matter most

The FTSE India Capped Index weights companies by market capitalization while limiting individual weights to reduce excessive concentration. Its constituents do not have equal influence: larger companies still account for a greater share of the result.

In the September 23 portfolio, HDFC Bank accounted for 5.32%, Reliance Industries for 5.31%, and ICICI Bank for 4.50%. Bharti Airtel had a 3.61% weight, followed by Infosys at 2.28%. The ten largest holdings together represented approximately 29.53%. The fund held a broad range of companies, but nearly three-tenths of its portfolio was concentrated in those ten names.

Banks are particularly important to this mix. HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank together accounted for 13.07% of the portfolio. Bajaj Finance, a financial services company, added 1.80%. The top ten thus included several banks and a consumer finance company. Reliance provided a different business exposure, while Bharti Airtel and Infosys added telecommunications and technology services.

The sector breakdown reinforces that picture. Financials represented 28.64% of FLIN, followed by consumer discretionary at 12.79%, industrials at 11.36%, materials at 9.09%, and energy at 7.72%. Information technology accounted for 7.32%. Banks, consumer-facing businesses, industrial companies and energy stocks consequently have considerable influence on the fund.

Want to follow discussions about indexes, strategies and the ETF market? INDEX 2026, DEX’s annual event, takes place on November 12 in São Paulo. Reserve your spot.

Economic growth does not automatically produce stock market gains

India’s economy grew 7.8% in the quarter ended June 2026 from a year earlier. Growth included a 12.1% increase in the group comprising financial, real estate, information technology and professional services. Gross fixed capital formation rose 11.9%. These figures provide context for some of the businesses represented in FTIN39.

Economic growth, however, does not automatically translate into rising stock prices. In the year-to-date 2026 total return series, FLIN was down 10.39% in U.S. dollars, while EEMA was up 25.83%. The 36.22 percentage point gap highlights the difference between Indian equities and a broader portfolio of emerging Asian stocks. These figures refer to the ETFs traded abroad, not to FTIN39’s return in Brazilian reais.

EEMA does not track the same index as FLIN. Taiwan represented 32.36% of its portfolio, China 29.01%, South Korea 20.01%, and India 14.48%. Information technology accounted for 44.75% of EEMA, compared with 7.32% of FLIN. The two funds therefore provide distinct exposures: one is concentrated in India with a large financial sector weight; the other spans several Asian markets and has a much heavier technology allocation.

FTIN39’s costs and risks

FLIN reports an annual expense ratio of 0.19%. That is the expense ratio of the U.S. ETF backing the BDR, rather than a measure of every cost associated with trading FTIN39 on B3. The fund had approximately US$2.60 billion in assets, and its portfolio traded at about 24.74 times earnings over the previous 12 months.

Three sets of prices matter when following the BDR: Indian share prices, the relevant exchange rates, and the price at which the certificate trades on B3. Holding many companies reduces reliance on any single stock, but it does not remove the portfolio’s concentration in India or its significant financial sector exposure.

FTIN39 thus combines a broad portfolio of Indian stocks with substantial weights in banks and other large companies. Its result for a Brazilian investor depends on the performance of those holdings and on how the U.S. ETF’s value is reflected in the BDR traded in reais. That distinction is essential when interpreting FLIN’s holdings and reported returns.

This content is for informational and educational purposes only. It is not a recommendation to invest in, buy, or sell any asset.