India ETFs Are a Hot Emerging Market Play

The economy as a whole is also on a more stable ground and is stronger than most of its developing market peers. India is enjoying one of the world’s fastest growth rates, improved fiscal discipline, a stable rupee currency, moderate current account deficit and slowing inflationary pressures.

With the country’s renewed focus on its domestic economy and growth among smaller business, India small-cap ETFs have been leading the charge in the recent rebound.

SCIN tries to reflect the performance of the Indxx India Small Cap Index, which is comprised of a maximum 75 companies in the small-cap segment in India. The Columbia offering focuses on banks 13.9%, followed by construction & engineering 11.9% and pharmaceuticals 7.0%.

SCIF tracks the MVIS India Small-Cap Index of small-cap companies in India. The fund has a broader 158 components and is more sector heavy on industrials 21.5%, followed by consumer discretionary 19.7% and financials 17.0%.

SMIN follws the MSCI India Small-Cap Index and is the most diversified with 256 components, with a heavy sector weight toward consumer discretionary 22.6%, followed by financials 19.4% and industrials 16.9%.

While each of the three are “small-cap” ETFs, the iShares offering includes a 11.5% tilt toward large-cap names and a big 61.5% position in mid-caps. The Columbia ETF does not have large-cap exposure, but it does include a large 59.8% weight toward mid-caps. SCIF may be the closest to a small-cap focus, with 71.7% small-caps and 6.9% micro-caps exposure.