The iShares S&P India Nifty 50 Index Fund (NYSEArca: INDY) captures the large-cap market, holding the largest 50 Indian stocks by market-cap. Potential investors should know that the current price-to-earnings is a little high at 29.6 and volatile relative to the S&P 500. The ETF’s sector allocations include banks 20.9%, software 12.6%, refineries 8.6%, cigarettes 8.3%, housing 6.6%, pharmaceutical 4.9%, engineering 4.4%, oil exploration 4.1%, passenger vehicles 3.2% and commercial vehicles 3.0%.
For small-cap exposure, the iShares MSCI India Small Cap Index (NYSEArca: SMIN) tries to reflect the performance of the MSCI India Small Cap Index and includes 141 small-cap companies. Sector allocations include financials 28.3%, consumer discretionary 15.4%, industrials 14.5%, materials 10.9%, health care 9.7%, consumer staples 8.1%, utilities 5.8%, information technology 5.8% and energy 1.4%. Looking at valuations, SMIN is cheaper than the large-caps at a 24.39 price-to-earnings.
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Max Chen contributed to this article.