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India Small-Cap Equity ETF (SCIF) Hits New 52-Week High

Zacks Equity Research

For investors looking for momentum, the VanEck Vectors India Small-Cap Index ETF SCIF is probably on your radar now. The fund just hit a 52-week high. Shares of SCIF are up roughly 46.63% from their 52-week low price of $37.89/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:


SCIF in Focus


SCIF focuses on providing exposure to Indian small-cap equities, thus serving as a pure play on the Indian economy. Industrials, Consumer Discretionary, and Financials are the top three sectors, with 24.2%, 16.9%, and 15.5% allocation, respectively (as on March 31, 2017). It charges 89 basis points in fees per year and has top holdings in Sintex Industries Ltd, Credit Analysis & Research Ltd, and PVR Ltd with a meager 6.7% 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. Though the market reaction to steady repo rates at the Monetary Policy Committee meeting on April 6, 2017 was mixed, investors are confident and are looking at this region as a potential investment. Consumer Confidence in India increased to 136 in Q4 2016 from 133 in Q3 2016. A key state election victory for the Prime Minister’s party has further boosted investor confidence. Moreover, small cap companies are domestically focused and provide a more refined exposure to the region.


More Gains Ahead?


Currently, SCIF has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook. Moreover, it has a weighted alpha of 43.7 and a low 14-day volatility of 7.17%.  So, there is definitely a promising outlook ahead for those who want to ride this surging ETF a little further.


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VANECK-INDIA SC (SCIF): ETF Research Reports
 
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