ETF Alert: Should You Invest in This Emerging Market?

From The Motley Fool

After Posco’s pullout from the multi-billion-dollar steel projects in India, the world’s leading steel maker ArcelorMittal (NYSE: MT), has also decided to pull the plug on its Indian investment plan. Posco was gearing up to construct a 6 million ton steel mill while ArcelorMittal was eyeing a project with an annual capacity to produce 12 million tons of steel. Both companies have cited identical reasons: a weak business environment, uncertainty surrounding iron-ore shipments and delays in acquiring land for their respective projects.

ETFs

India's capital markets are represented in nearly a dozen ETFs, but the largest and most popular one is the WisdomTree India Earnings Fund (NYSEMKT: EPI). The ETF is one of the worst-performing BRIC-nation funds and has dropped by 19.2% this year.

This ETF offers diversity to investors by allocating 22.8% to its biggest segment, financials, followed by 20.6% to energy and 16.7% to the IT sector. Its three biggest firms, Reliance Industries, Infosys and ONGC, constitute 24.1% of the fund.

The second biggest Indian ETF in terms of assets is the iShares S&P India Nifty 50 Index (NASDAQ: INDY), which focuses on the 50-biggest Indian firms. This ETF is a relatively safer investment due to

This Steel Giant Is Expecting an Improved Business Environment

From The Motley Fool, June 7, 2013

The world’s leading steel producer, ArcelorMittal (NYSE: MT), recently released its quarterly results that disappointed investors, but the sequential improvements led to some optimism. Meanwhile, its American rival, United States Steel (NYSE: X), also released its results that weren't any better, but the company is in a good position to capitalize on the changing market conditions. Steel stocks have largely struggled in the past, with the exception of Nucor (NYSE:NUE), due to problems associated with overcapacity.