EEMS - SMIN: Caution Warranted Towards One Of The Dazzling Equity Counters Of The World
2024-03-07 17:51:42 ET
Summary
- iShares MSCI India Small-Cap ETF has generated tremendous alpha for a long time now.
- Indian small-caps are favored due to the country's strong economic growth, political stability, and encouraging industrial and business conditions.
- Despite a favorable backdrop, we close with some thoughts on why it may be prudent to not get carried away at these levels.
Rock-Solid Alpha Generation
The iShares MSCI India Small-Cap ETF ( SMIN ) is an $800m sized ETF that covers close to 500 small-cap stocks in India. Note that over the past year, this has proven to be one of the stellar equity pockets across the world, generating returns of over 40%, also translating to 10x the return profile of emerging markets in general! Even against a more diversified and broader pool of global stocks it has come out on top by over 2x....
SMIN: Caution Warranted Towards One Of The Dazzling Equity Counters Of The World