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Is WisdomTree India Earnings ETF (EPI) a Strong ETF Right Now?
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Making its debut on 02/22/2008, smart beta exchange traded fund WisdomTree India Earnings ETF (EPI - Free Report) provides investors broad exposure to the Asia-Pacific (Emerging) ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, EPI has amassed assets over $1.77 billion, making it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs. Before fees and expenses, EPI 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.85% for EPI, making it one of the most expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.15%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Reliance Industries Ltd (RIL) accounts for about 7.81% of total assets, followed by Hdfc Bank Limited (HDFCB) and Infosys Ltd (INFO - Free Report) .
The top 10 holdings account for about 39.15% of total assets under management.
Performance and Risk
So far this year, EPI has gained about 22.18%, and is up about 20.23% in the last one year (as of 12/12/2023). During this past 52-week period, the fund has traded between $30.87 and $39.76.
The ETF has a beta of 0.69 and standard deviation of 16.73% for the trailing three-year period, making it a medium risk choice in the space. With about 481 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 $743.38 million in assets, iShares MSCI India ETF has $6.64 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?
Making its debut on 02/22/2008, smart beta exchange traded fund WisdomTree India Earnings ETF (EPI - Free Report) provides investors broad exposure to the Asia-Pacific (Emerging) ETFs category of the market.
What Are Smart Beta ETFs?
Products that are based on market cap weighted indexes, which are strategies designed to reflect a specific market segment or the market as a whole, have traditionally dominated the ETF industry.
Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency.
There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.
Based on specific fundamental characteristics, or a combination of such, these indexes attempt to pick stocks that have a better chance of risk-return performance.
This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.
Fund Sponsor & Index
Managed by Wisdomtree, EPI has amassed assets over $1.77 billion, making it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs. Before fees and expenses, EPI 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
When considering an ETF's total return, expense ratios are an important factor. And, cheaper funds can significantly outperform their more expensive cousins in the long term if all other factors remain equal.
Operating expenses on an annual basis are 0.85% for EPI, making it one of the most expensive products in the space.
It's 12-month trailing dividend yield comes in at 0.15%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Reliance Industries Ltd (RIL) accounts for about 7.81% of total assets, followed by Hdfc Bank Limited (HDFCB) and Infosys Ltd (INFO - Free Report) .
The top 10 holdings account for about 39.15% of total assets under management.
Performance and Risk
So far this year, EPI has gained about 22.18%, and is up about 20.23% in the last one year (as of 12/12/2023). During this past 52-week period, the fund has traded between $30.87 and $39.76.
The ETF has a beta of 0.69 and standard deviation of 16.73% for the trailing three-year period, making it a medium risk choice in the space. With about 481 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 $743.38 million in assets, iShares MSCI India ETF has $6.64 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.