Christian Magoon: A quick review of the five best India ETF products in 2012 shows a clear trend: small cap Indian stocks are the place to be. The best India ETF is small cap focused and has doubled the performance of several large cap funds. The Market Vectors Small Cap India ETF (NYSEARCA:SCIF) has gained close to 9% for the year. The runner up to SCIF? You guessed it, another small cap ETF. The EG Shares India Small Cap ETF (NYSEARCA:SCIN) has gained close to 8% year to date. Both ETFs have been consistent performance leaders in 2012 as small caps have continued to outperform large caps in during the volatility of India markets. These ETFs are several percentage points ahead of the third best performing India ETF, the EG Shares India Consumer ETF (NYSEARCA:INCO). Here’s the chart of the five best India ETF products from the IndiaETFs.com performance grid.
The most widely held India ETF, the WisdomTree India Earnings Fund (NYSEARCA:EPI), places fifth on the list at 4.6% year to date. A notable absence from the list is the second largest India ETF, the PowerShares India ETF (NYSEARCA:PIN), which has a slight gain of .06% and is the worst performing non leveraged India ETF in 2012. The second largest India exchange traded product, the iPath India ETN (NYSEARCA:INP), comes in 6th at 4.5% year to date.
India ETF products contain close to $2 billion of investor assets. While the best India ETF products have had close to double digit gains in 2012, these funds have still failed to attract significant assets. This is likely due to the turmoil India continues to face internally. Inflation has been creeping higher, GDP has been slowing, the value of the rupee has declined and credit ratings agency S&P has indicated that India is headed for a downgrade of its debt to junk status. This has turned off the spigot of cash into Indian markets by foreign investors that was flowing heavily in January and February. Since late February Indian markets have continued to trend downward as concerns internally and externally continue to weigh on markets.
Here’s a list of all the India ETF and ETN products listed in the United States sorted by assets. This list is part of the India ETF list section of IndiaETFs.com.
Christian Magoon is Publisher of GoldETFs.biz and IndiaETFs.com. He is also CEO of Magoon Capital, a strategic consultant firm to asset managers. Christian Magoon is an ETF insider, having launched over 40 ETFs in the United States to date. A widely recognized thought leader on finance and market issues, Christian regularly contributes to many financial media outlets. Prior to forming Magoon Capital in 2010, Christian was President of Claymore Securities (now Guggenheim Investments), where he built one of the fastest growing and most innovative ETF businesses in the country, gathering more than $3 billion in AUM in three years. He launched more than 40 ETFs, introducing many “firsts” to the U.S. market, including the first Frontier Markets, Sector Rotation, Solar Energy, Timber, BRIC and suite of China focused ETFs. Christian consistently provides his industry insights and knowledge as a commentator in the U.S. media speaking publicly on macro investment issues and ETF related topics. Follow him on Twitter @ChristianMagoon. In 2008, he was named by Institutional Investor News as one of the five people to watch in the U.S. ETF marketplace. In 2011, Financial Planning magazine dubbed Christian an “ETF Pioneer.”