ETF Spotlight on Market Vectors India Small-Cap Index ETF (SCIF), part of a ongoing series.
Assets: $56.4 million.
Objective: The Market Vectors India Small-Cap Index ETF tries to reflect the performance of the Market Vectors India Small-Cap Index, which is comprised of publicly traded, small-cap companies domiciled in India.
Holdings: Top holdings include: Housing Development HDIL 3.9%, Hexaware Technol 3.8%, IFCI LTD 3.7%, Indiabulls Real Estate 2.5% and Punj Lloyd LTD 2.3%.
What You Should Know:
- Van Eck Global's Market Vectors ETF division sponsors the fund.
- SCIF has an expense ratio of 0.85%.
- The fund holds 108 securities and the top ten account for 26.5% of the fund's overall portfolio.
- Sector allocations include: financials 21.6%, consumer discretionary 20.7%, industrials 18.9%, materials 13.7%, information technology 10.7%, consumer staples 4.4%, health care 4.2%, energy 3.0%, utilities 2.1% and telecom services 0.7%.
- The ETF has a 12-month yield of 1.33%.
- The fund is up 5.1% over the past week, down 3.2% over the last month and up 40.9% year-to-date.
- SCIF is still 8.2% below its 200-day exponential moving average.
- "Over the next year or two, India's GDP is estimated to run at a high single-digit rate, driven by private consumption and investment for manufacturing capacity expansions and much-needed infrastructure investment," according to Morningstar analyst Patricia Oey. "In the longer term, India's young population and educated middle- and upper-class citizens should help support continued domestic growth."
- "Small-cap-focused SCIF has a much lower weighting in energy firms and higher weightings in industrial and consumer companies, which should provide better exposure to India's anticipated consumer and investment-driven growth," Oey added.
The Latest News:
- SCIF was the best performing emerging market equity ETF over the first quarter, according to Emerging Money for Seeking Alpha.
- Ernst & young's quarterly Rapid Growth Markets Forecast puts India's economy to expand 6.1% for 2012, Business Line reports.
- Growth should pick up in the second half, according to the forecast.
- India's GDP growth is projected to be over 9% by 2014.
- "India's domestic demand-driven growth model is acting as a catalyst for attracting foreign investments into the country. Although the ongoing global uncertainty may have prompted global investors to become more cautious, India's inherent advantages and proven resilience to counter-act macroeconomic challenges generally outweighs these concerns," Ernst & Young India Partner & India Markets Leader, Farokh Balsara, said in the article.
Market Vectors India Small-Cap Index ETF
Max Chen contributed to this article.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.