Luskin singles out India as an emerging market that's poised to benefit from cheap oil. He compares falling oil prices to a "lottery win" for the country. For marketlike coverage of Indian securities, INDA does the trick. The $2.8 billion market-cap-weighted fund captures large- and midcaps, covering 85 percent of India's total market cap. Even though it charges 68 basis points, INDA tends to trail its index by only 54 basis points, suggesting an efficiently run fund. Trading costs are also minimal, since the fund trades at pennywide spreads. One caveat: A creation unit accounts for close to 4 percent of the fund's underlying securities' total volume, so block traders should take note.
Luskin thinks cheap oil is here to stay, and that will ultimately allow lower commuting costs, leading to another suburban housing boom. ITB is currently the only cap-weighted ETF targeting homebuilders, and it's a solid choice. The fund boasts $1.8 billion in assets and holds roughly 40 of the largest homebuilders like D.R. Horton, Lennar, Pulte and Toll Brothers. ITB also casts a wide net, reaching beyond builders and into home furnishing and improvement retailers. The fund has a history of tracking its index closely in line with its 45 basis point expense ratio. The fund trades at pennywide spreads and exhibits robust block liquidity.