For investors seeking momentum, iShares MSCI India Small-Cap ETF (SMIN Quick QuoteSMIN - Free Report) 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.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

SMIN in Focus

The underlying MSCI India Small Cap Index is a free-float adjusted market capitalization weighted index designed to measure the performance of equity securities of small capitalization companies whose market capitalization represents the bottom 14% of companies in the Indian securities market. The product charges 74 bps in annual fees (See: all Asia-Pacific (Emerging) ETFs).

Why the Move?

Small-cap stocks are closely connected to the domestic economy because their capitalization is influenced by how well the domestic economy is doing. The IMF's upward revision of India's growth forecast to 6.1% in 2023 underscores the country's resilience and potential for economic expansion.

With a stable political environment and a government committed to economic reforms, India has attracted both domestic and foreign investors. The IMF's projection for 6.3% growth in 2024 indicates a continued positive trajectory for the Indian economy.

More Gains Ahead?

The fund might continue its strong performance given a positive weighted alpha of 3.60%.