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

Sanghamitra Saha
Is (MCS) Outperforming Other Consumer Discretionary Stocks This Year?

For investors seeking momentum, iShares MSCI India Small-Cap ETF SMIN is probably on radar now. The fund just hit a 52-week high and is up over 58% from its 52-week low price of $31.81/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

SMIN in Focus    

This product offers exposure to the small-cap stocks of India. Consumer Discretionary, Financials, Industrials and Materials are the top four sectors of the fund with a double-digit weight each. The fund charges 80 bps in fees (see all Asia-Pacific (Emerging) ETFs here).

Why the Move?

The Indian economy is likely to have picked up paced in the quarter ended September with several forecasts signaling growth of 6.3%. If attained, the growth rate will mark a sharp rebound from a three-year low of 5.7% growth in the prior quarter. This data was enough to spur investors’ optimism around small-cap stocks as capitalization better reflects the domestic economy.

More Gains Ahead?

The fund has a Zacks ETF Rank #2 (Buy) with a High risk outlook. Plus, the fund has a positive weighted alpha of 51.10. A positive weighted alpha hints at more gains. As a result, there is definitely still some promise for investors who want to ride on this surging ETF.

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ISHARS-M IND SC (SMIN): ETF Research Reports
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