Tell Me More: India's Economy Only Starting To Blossom

While "only" the second-fastest growing major economy in the world, India's growth story is at this point well-documented and that is of course fueling impressive gains for Indian equities and the ETFs that track those equities. The Bombay Sensex is up 18% this year and foreign investors have poured fresh cash into Indian stocks to the tune of $21 billion. Well, the hits just keep on coming. Foreign fund inflows have surged 59 percent this year, according to data from the Securities and Exchange Board of India compiled by Bloomberg and the Sensex is closing in on its record high set in January 2008. Add to that the expectations of Prashant Jain, chief investment officer at HDFC Asset Management Co., the nation's second-biggest money manager. Jain told Bloomberg that Indian could return as much as 20% over the next three to five years. Time to update the list of the Professor's preferred India-specific ETFs. 1) Direxion Daily India Bull 2X Shares

: INDL has only been trading for a few months, so the volume leaves a bit to be desired at this point, but given the popularity of leveraged ETFs and India-specific funds, that is bound to change. INDL is the only leveraged India-specific play. Obviously, you cannot hold this fund for years on end, but it should prove to be a great tool for the nimble trader to play India's growth with. 2) WisdomTree India Earnings ETF

: Consider EPI a tortoise among emerging markets ETFs. The ATR on this fund is just under 40 cents a day, but no one should complain given the parabolic move it has been on lately. Probably the best way to play India's largest companies. 3) Emerging Global Shares Index Small Cap ETF

: SCIN tracks the Indxx India Small Cap Index, which is home to 75 companies. The ETF is another new kid on the block, but is up more than 7% in two months of trading. The expense ratio is a tad high at 0.85%, making it a difficult buy-and-hold proposition, but small-caps are sure to benefit as India's GDP continues to surge. 4) Market Vectors India Small-Cap ETF

: Like SCIN, SCIF is new to the game, but there are some differences. SCIF tracks 120 companies, but has the same expense ratio as SCIN. SCIF has attracted about $13 million in assets in just six weeks of trading.