ETF Spotlight: Market Vectors India Small-Cap

April 10th at 2:50pm by Tom Lydon

ETF Spotlight on Market Vectors India Small-Cap Index ETF (NYSEArca: 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

For past stories in this series, visit our ETF Spotlight category.

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Tickers