For investors looking for momentum, the Columbia India Small Cap ETF (SCIN – Free Report) is probably on your radar now. The fund just hit a 52-week high. Shares of SCIN are up roughly 52.5% from its 52-week low price of $13/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:
SCIN in Focus
SCIN focuses on providing exposure to Indian small-cap equities, thus serving as a pure play on the Indian economy. Industrials, Financials, and Consumer Discretionary are the top three sectors, with 30.61%, 17.96%, and 17.30% allocation, respectively (as on March 31, 2017). It charges 86 basis points in fees per year and has top holdings in Suzlon Energy Ltd, Tata Global Beverages Ltd, and Escorts Ltd with a little over 10.5% collective 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. Amid decreasing returns from gold and real estate, small-cap stocks seem to be gathering the cash. The S&P BSE Small-Cap Index has gained 26.11% in the year-to-date time frame (as of April 28, 2017). 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 further boosted investor confidence. Moreover, small cap companies are domestically focused and provide a more refined exposure to the region.
More Gains Ahead?
Currently, SCIN has a Zacks ETF Rank #2 (Buy) with a High risk outlook. Moreover, it has a weighted alpha of 48.9 and a moderate 14-day volatility of 16.66%. So, there is definitely a promising outlook ahead for those who want to ride this surging ETF a little further.
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