For investors looking for momentum, the iShares MSCI India Small-Cap ETF (LON:SMIN) is probably on your radar now. The fund just hit a new 52-week high. Shares of SMIN are up roughly 48.68% from their 52-week low price of $30.36/share.
But could more gains be ahead for this ETF? Let’s take a quick look at the fund and the near-term outlook to get a better idea on where it might be headed:
SMIN in Focus
SMIN focuses on providing exposure to Indian small-cap equities, thus serving as a pure play on the Indian economy. Consumer Discretionary, Financials, and Industrials are the top three sectors, with 22.84%, 19.18%, and 17.43% allocation, respectively (as on May 8, 2017). It charges 80 basis points in fees per year and has top holdings in Federal Bank Ltd, Crompton Greaves Consumer Electric, and Sun TV Network Ltd with a meager 5.02% allocation to them (see all Broad Emerging Market ETFs here).
Why the Move?
Lately, the Indian economy has been gaining a lot of traction, as investors look at emerging market investments amid uncertainty over President Trump’s protectionist agenda. Investors are shifting to equities amid declining returns from gold and real estate. Indian markets are reaching all-time highs. The BSE Sensex has gained 12.6% so far this year compared with 7.06% for S&P 500. A key state election victory for the Prime Minister’s party further boosted investor confidence. Therefore, key reforms are expected, which is attracting foreign capital. Moreover, small cap companies are domestically focused and provide a more refined exposure to the region.
More Gains Ahead?
Currently, SMIN has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook. Moreover, it has a weighted alpha of 49.80 and a low 14-day volatility of 10.35%. So, there is definitely a promising outlook ahead for those who want to ride this surging ETF a little further.
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ISHARS-M IND SC (SMIN): ETF Research Reports
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