What do you get when you mix India with Small Cap Stocks? Well, that would be the Market Vectors India Small-Cap ETF according to this week's BusinessWeek print copy. If a broader emerging markets ETF for small caps is any barometer, the SPDR S&P Emerging Markets Small Cap ETF (EWX) is up 80% YTD. Compare that to 59% for iShares MSCI Emerging Markets Index (EEM) a comparable proxy for emerging markets stocks (refer to this list of all Emerging Markets ETFs) and 18% for the S&P500 (SPY).

Of course, with massive returns like this comes greater volatility and risk of implosion. If you have a spot for speculative investments in your portfolio though, this one may be worth holding for the long term since both emerging markets and small caps in general tend to be more volatile and hence, provide supercharged returns in up markets over time.

At the moment, no word on when this new ETF will be available or what the ticker will be. The Van Eck Fund Filing page is devoid of any information. I'll be sure to update as soon as the information becomes available, so be sure to Subscribe to RSS or follow my Twitter.

Source: BusinessWeek Edition 16-Nov-2009

Disclosure: No position in EEM. Ratio Put Spread hedged position in SPY.