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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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader 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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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 $2.94 billion, this makes it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs. EPI is managed by Wisdomtree. EPI, 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.87% for EPI, making it one of the most expensive products in the space.
The fund has a 12-month trailing dividend yield of 0.29%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Wt India Investment Portfolio Inc accounts for about 92.69% of total assets, followed by Indusind Bank Ltd (IIB) and Itc Ltd .
EPI's top 10 holdings account for about 94.5% of its total assets under management.
Performance and Risk
So far this year, EPI has lost about -8.06%, and is down about -6.14% in the last one year (as of 02/26/2025). During this past 52-week period, the fund has traded between $41.62 and $50.82.
EPI has a beta of 0.80 and standard deviation of 15.88% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 205 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.
Franklin FTSE India ETF (FLIN - Free Report) tracks FTSE INDIA CAPPED INDEX and the iShares MSCI India ETF (INDA - Free Report) tracks MSCI India Total Return Index. Franklin FTSE India ETF has $1.66 billion in assets, iShares MSCI India ETF has $8.38 billion. FLIN has an expense ratio of 0.19% and INDA charges 0.62%.
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?
For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader 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.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
By attempting to pick stocks that have a better chance of risk-return performance, non-cap weighted indexes are based on certain fundamental characteristics, or a combination of such.
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 $2.94 billion, this makes it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs. EPI is managed by Wisdomtree. EPI, 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
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Operating expenses on an annual basis are 0.87% for EPI, making it one of the most expensive products in the space.
The fund has a 12-month trailing dividend yield of 0.29%.
Sector Exposure and Top Holdings
ETFs offer diversified exposure and thus minimize single stock risk, but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
Looking at individual holdings, Wt India Investment Portfolio Inc accounts for about 92.69% of total assets, followed by Indusind Bank Ltd (IIB) and Itc Ltd .
EPI's top 10 holdings account for about 94.5% of its total assets under management.
Performance and Risk
So far this year, EPI has lost about -8.06%, and is down about -6.14% in the last one year (as of 02/26/2025). During this past 52-week period, the fund has traded between $41.62 and $50.82.
EPI has a beta of 0.80 and standard deviation of 15.88% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 205 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.
Franklin FTSE India ETF (FLIN - Free Report) tracks FTSE INDIA CAPPED INDEX and the iShares MSCI India ETF (INDA - Free Report) tracks MSCI India Total Return Index. Franklin FTSE India ETF has $1.66 billion in assets, iShares MSCI India ETF has $8.38 billion. FLIN has an expense ratio of 0.19% and INDA charges 0.62%.
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.