SMIN Stock Recent News

For investors seeking momentum, iShares MSCI India Small-Cap ETF SMIN is probably on radar. The fund just hit a 52-week high and is up 29.9% from its 52-week low price of $48.11/share.

India could be a good option for international diversification, as it offers a low correlation with the U.S. and is less dependent on a weak dollar and strong commodities. Despite being considered an emerging market, India has a well-established legal system and a large English-speaking population, which gives it a head start in interactions with free market democracies. Since 1991, India has seen an average GDP growth of 6-7%, double that of the U.S., making it an attractive investment option.

India is expected to become one of the main growth engines of the global economy due to its large population and economic opportunities created by the pandemic. The iShares MSCI India Small-Cap ETF is a favorable way to capture India's growth, with a diversified portfolio and exposure to industrials and basic materials. India's GDP is projected to exceed $10 trillion by 2030, and investing in India could potentially yield high returns, making SMIN an appealing investment option.

India's investment landscape is attracting considerable attention and optimism, backed by the IMF's encouraging growth projections.

For many years, China dominated the emerging markets spotlight. At one point, it commanded a weight of nearly one-third of the market capitalization of major indexes.

Earlier this year, the investing world buzzed with excitement over the reopening of China and its economy. Which led many to believe it was a promising bet for emerging market investments.

The iShares MSCI India Small-Cap ETF makes for a valid investment as it could appreciate by 19% despite recession risks in the developed world. My bullish stance is supported by strong GDP figures, infrastructure investments, reforms undertaken by the Indian government, and India's less correlation with global growth.

Good growth momentum, strong credit growth, and a supportive budget environment provide a positive backdrop, though the Reserve Bank of India (RBI) still has work to do to tame inflation. Export growth is running at only about -6.5%YoY, a much smaller decline than the 20% fall we see in economies such as Korea, Taiwan, and Singapore.

With the Indian growth story intact, the iShares MSCI India Small-Cap ETF offers investors a vehicle for higher beta exposure. In the near term, the sector allocation skew should see the fund benefit from the capex increase outlined in the recent budget.

SMIN invests in small-cap Indian stocks. The fund has technically out-performed U.S. equities recently; however, perhaps a lot of this has been due to favorable cyclical positioning and international equity rotation.