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India ETF (EPI) Hit a New 52-Week High

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For investors seeking momentum, WisdomTree India Earnings Fund (EPI - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 39.14% from its 52-week low price of $32.47/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:

EPI in Focus

The underlying WisdomTree India Earnings Index is a fundamentally weighted index that measures the performance of companies incorporated and traded in India that are profitable and that are eligible to be purchased by foreign investors as of the index measurement date. Weighted Index based on their earnings in their fiscal year prior to the Index measurement date adjusted for foreign investors. The product charges 85 bps in annual fees (See: all Emerging Asia-Pacific ETFs).

Why the Move?

India is undergoing general election. The process will continue in May as well. Votes will be counted on June 4. In the election, the market-friendly prime minister Narendra Modi is expected to win another term. Modi's tenure has seen significant investments from U.S. tech giants in India.

Investors should note that sustaining a growth rate above 7% for a third consecutive year, particularly amid backdrop of a global slowdown, could significantly enhance Modi's chances of securing a third term.

The International Monetary Fund (IMF) recently upped India’s GDP growth projection for 2024-25 by 30 basis points to 6.8% in its update to the World Economic Outlook (WEO), citing resilient domestic demand. IMF forecast a 6.5% expansion for the next fiscal year 2025-26.

More Gains Ahead?

Currently, EPI has a Zacks ETF Rank #3 (Hold). However, it might continue its strong performance in the near term, with a positive weighted alpha of 37.51, which gives cues of a further rally.


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