Seeking Alpha
, ETF Trends (376 clicks)
ETF investing
Profile| Send Message|
( followers)  

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


(Click to enlarge)

Max Chen contributed to this article.

Source: ETF Spotlight: Market Vectors India Small-Cap