NEW YORK (TheStreet) -- As investors continue to reap the benefits of growth in emerging markets, exchange-traded fund provider Van Eck recently announced the launch of the Market Vectors India Small-Cap Index ETF giving investors yet another way to access the emerging nation.
SCIF seeks to replicate the performance of the Market Vectors India Small-Cap Index which provides exposure to publicly traded companies that are headquartered in India or that generate the majority of their revenue in the country. Additionally, the index utilizes a float-adjusted modified market capitalization weighting methodology to determine holdings.
As for a sector breakdown, the index allocates 26.8% of its assets to industrials, 20.4% to financials, 13.7% to materials, 12.2% to information technology and 11.8% to consumer discretionary. The index has 122 holdings, with
as its top two holdings.
The beauty behind SCIF is that it allows investors to invest in smaller companies in India, which tend to have more localized businesses and earnings growth. Looking ahead, as purchasing power of the Indian consumer increases and the middle class continues to widen, consumer spending will follow and smaller companies will benefit.
Another way for investors to play the small-cap market in India is through the
EGShares India Small-Cap
, which aims to replicate the price and yield performance of the Indxx India Small Cap Index. The Indxx India Small Cap Index is a free float market-capitalization-weighted stock market index made up of a representative sample of 75 Indian companies that are domiciled in India, which allocates 12.59% of its assets to commercial banks and 8.67% to IT services.
For those looking to gain access to large-cap Indian stocks like
, one could consider the following:
- WisdomTree India Earnings (EPI) - Get WisdomTree India Earnings Fund Report
- iPath MSCI India ETN (INP)
- PowerShares India (PIN) - Get Invesco India ETF Report
Written by Kevin Grewal in Houston
Grewal has no positions in the securities mentioned
Kevin Grewal is the founder, editor and publisher of
ETF Tutor and serves as the editor at
www.SmartStops.net , where he focuses on mitigating risk and implementing exit strategies to preserve equity. Additionally, he is the editor at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Prior to this, Grewal was a quantitative analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.