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Summary The EGShares India Small Cap ETF is another excellent way to access India’s growth, with comparatively lower valuation. The fund’s investment approach is extremely diverse, with the top 10 holdings only accounting for 29% of the fund’s total assets. Economic highlights of investing in India included annual GDP growth projections of 7.5% for next year, as well as a substantial increase in consumer spending and disposable personal income. The Market Vectors Small Cap Index ETF and the EGShares India Small Cap ETF are two best ways for investors to gain exposure to India through an ETF. In a previous article , I mentioned the benefits of the Market Vectors Small Cap Index ETF (NYSEARCA: SCIF ). Small cap ETFS in India have lower valuation, and have consistently demonstrated substantial earnings growth. For these reasons, I have proposed that small cap ETFs are one of the best ways for investors to gain exposure to India’s fast growing economy. Some previously mentioned highlights of investing in India, include the following: Current annual GDP growth of 7%, which is projected to increase to 7.5% during the 2nd quarter of 2016. High growth in consumption, which is relevant for every socioeconomic level. During the next 12 months, consumer spending is projected to increase by 6.2%, while disposable income will increase by 20.2% The EGShares India Small Cap ETF (NYSEARCA: SCIN ) is another excellent option for investors to gain exposure to India’s economic growth, through an ETF that has low valuation and has had high earnings growth. SCIN data by YCharts The fund’s price has dropped sharply this year, which has consequently created low valuation : P/E: 10.76 P/B: 1.01 P/S: 0.51 Top 10 Holdings An observation of the fund’s top 10 holdings provides a favorable outlook, although the top 10 holdings only account for approximately 29% of the fund’s total assets . Growth for these holdings has been substantial, with the exception of NCC Ltd and Suzlon Energy Ltd. This fund offers the comparative advantage of higher company diversification and lower valuation, as the Market Vectors Small Cap Index ETF’s top ten holdings account for 63.3% of the fund, and its P/E ratio is 11.9. However, the EGShares India Small Cap ETF has substantially lower liquidity, with an average trading volume of 10,179 . Conclusion The lesson from observing both funds is clear; small cap companies have displayed substantial growth and have low valuation. A reconciliation in the price of both of these funds is certainly befitting, as the fund’s price has not rationally responded to the growth in earnings. I recommend both funds as an excellent means to gain exposure to India’s economic growth, and do not recommend the iShares MSCI India ETF (BATS: INDA ) due to its higher valuation. Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More…) I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Share this article with a colleague