**[investwise]** India Dedicated ETF's Warm Up Investors In The West

 

India has the second-fastest growing GDP in the world behind China. Last week Morgan Stanley said India might overtake China as the fastest growing economy by 2015, and could reach a growth rate of 9.5 percent between 2011 and 2015.   The South Asian country is expected to double infrastructure and add six times more workers than China over the next 5 years.  Morgan Stanley economist Chetan Ahya said, "...there will be a clear divergence of growth rates between the two countries". He projects India will add 136 million workers by 2020, compared to China's 23 million workers.   Manmohan Singh, the Prime Minister of India, says the government plans to double its spending on ports, roads, and power plants between 2012 and 2017. This will most likely lead to an increase in workers and salaries, which will help boost growth in the economy.   ***With India's growth rate accelerating so fast, it's worth looking at small cap investment opportunities in the country. One of the easiest ways to gain exposure is through an ETF, and now there's one that offers exposure to small cap stocks in this overlooked market.   The Emerging Global Shares Index Small Cap ETF (NYSE: SCIN) was recently launched in July. It invests in 75 publically traded companies in India with market caps between $100 million and $2 billion. This is a great play that focuses more on consumer demand for domestic products rather than exports to already developed countries.   Regarding the ETF, Richard Kang, CIO and director of research at Emerging Global Advisors, says, "There are only four Indian ETFs out there, we are the fifth one and we are the only one that focuses on small-caps".   Existing Indian ETFs including iPath MSCI India Index ETN (NYSE: INP), Powershares India (NYSE: PIN), and iShares S&P India Nifty 50 Index (Nasdaq: INDY) all target large-cap stocks in India. But SCIN is the only one that gives investors pure exposure to high-growth small cap stocks.   The chart below shows the ETF's strong performance over the last month and a half. Since its inception date on July 7 SCIN it has returned 8.4 percent. Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

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