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Is WisdomTree India Earnings ETF (EPI) a Strong ETF Right Now?
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A smart beta exchange traded fund, the WisdomTree India Earnings ETF (EPI - Free Report) debuted on 02/22/2008, and offers broad exposure to the Asia-Pacific (Emerging) ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $1.30 billion, this makes it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs. EPI is managed by Wisdomtree. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree India Earnings Index.
The 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.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.85%, making it one of the most expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.16%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Reliance Industries Ltd (RIL) accounts for about 6.70% of the fund's total assets, followed by Tata Steel Ltd (TATA) and Icici Bank Ltd (ICICIBC).
EPI's top 10 holdings account for about 31.09% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree India Earnings ETF return is roughly 13.56% so far, and was up about 19.62% over the last 12 months (as of 10/11/2023). EPI has traded between $30.45 and $37.92 in this past 52-week period.
The fund has a beta of 0.71 and standard deviation of 17.10% for the trailing three-year period, which makes EPI a medium risk choice in this particular space. With about 417 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree India Earnings ETF is a reasonable option for investors seeking to outperform the Asia-Pacific (Emerging) ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares India 50 ETF (INDY - Free Report) tracks Nifty 50 Index and the iShares MSCI India ETF (INDA - Free Report) tracks MSCI India Total Return Index. IShares India 50 ETF has $670.91 million in assets, iShares MSCI India ETF has $6.07 billion. INDY has an expense ratio of 0.89% and INDA charges 0.64%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Asia-Pacific (Emerging) ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is WisdomTree India Earnings ETF (EPI) a Strong ETF Right Now?
A smart beta exchange traded fund, the WisdomTree India Earnings ETF (EPI - Free Report) debuted on 02/22/2008, and offers broad exposure to the Asia-Pacific (Emerging) ETFs category of the market.
What Are Smart Beta ETFs?
The ETF industry has long been dominated by products based on market cap weighted indexes, a strategy created to reflect the market or a particular market segment.
Because market cap weighted indexes provide a low-cost, convenient, and transparent way of replicating market returns, they work well for investors who believe in market efficiency.
On the other hand, some investors who believe that it is possible to beat the market by superior stock selection opt to invest in another class of funds that track non-cap weighted strategies--popularly known as smart beta.
Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.
Methodologies like equal-weighting, one of the simplest options out there, fundamental weighting, and volatility/momentum based weighting are all choices offered to investors in this space, but not all of them can deliver superior returns.
Fund Sponsor & Index
Because the fund has amassed over $1.30 billion, this makes it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs. EPI is managed by Wisdomtree. This particular fund, before fees and expenses, seeks to match the performance of the WisdomTree India Earnings Index.
The 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.
Cost & Other Expenses
For ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.
Annual operating expenses for this ETF are 0.85%, making it one of the most expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.16%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Reliance Industries Ltd (RIL) accounts for about 6.70% of the fund's total assets, followed by Tata Steel Ltd (TATA) and Icici Bank Ltd (ICICIBC).
EPI's top 10 holdings account for about 31.09% of its total assets under management.
Performance and Risk
Year-to-date, the WisdomTree India Earnings ETF return is roughly 13.56% so far, and was up about 19.62% over the last 12 months (as of 10/11/2023). EPI has traded between $30.45 and $37.92 in this past 52-week period.
The fund has a beta of 0.71 and standard deviation of 17.10% for the trailing three-year period, which makes EPI a medium risk choice in this particular space. With about 417 holdings, it effectively diversifies company-specific risk.
Alternatives
WisdomTree India Earnings ETF is a reasonable option for investors seeking to outperform the Asia-Pacific (Emerging) ETFs segment of the market. However, there are other ETFs in the space which investors could consider.
IShares India 50 ETF (INDY - Free Report) tracks Nifty 50 Index and the iShares MSCI India ETF (INDA - Free Report) tracks MSCI India Total Return Index. IShares India 50 ETF has $670.91 million in assets, iShares MSCI India ETF has $6.07 billion. INDY has an expense ratio of 0.89% and INDA charges 0.64%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Asia-Pacific (Emerging) ETFs.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.