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EGShares Small Cap India ETF (SCIN)

EGShares Small Cap India ETF (SCIN)

This pick is more of an opportunistic buy of an asset class that has potential to deliver huge returns over the long run. The Indian economy is expected to eventually become the second-largest in the world, posting growth rates over the next several decades that surpass even China. Small cap companies that rely on growth in local consumption should be ideally positioned to profit from a swelling middle class, ongoing urbanization, and general increases in wealth and improvements in quality of life [see Evaluating India ETFs: Three Important Factors To Consider].

SCIN's struggles in 2011 allow investors to tap into this investment theme at a big discount; this fund has lost more than 40% of its value in 2011 as a result of inflation-related concerns, corruption, and general risk aversion. India is frustrating to many investors: a massive economy with tremendous untapped economic potential that has repeatedly stumbled in its attempt to increase its presence on the global stage. SCIN could definitely have more short-term volatility ahead, but this fund could deliver some impressive returns to those willing and able to hold on for the long haul.


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