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India Equity ETF (EPI) Hits New 52-Week High

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Investors seeking momentum may have WisdomTree India Earnings Fund (EPI - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of EPI are up approximately 40.1% from their 52-week low of $19.43/share.


But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.


EPI in Focus


EPI focuses on providing exposure to Indian equities, using earnings as a barometer to select the holdings. Financials, Energy and Information Technology are the top three sectors, with 23.6%, 19.9% and 15.6% allocation, respectively (as of Nov 1, 2017). It charges 84 basis points in fees per year and has top holdings in Reliance Industries Ltd, Infosys Ltd and Housing Development Finance Co, with 9.3%, 6.7% and 6.0% allocation, respectively (as of Nov 1, 2017) (see all Broad Emerging Market ETFs here).


Why the Move?


Lately, the Indian economy has been gaining a lot of traction. Moreover, markets are scaling new highs. This is primarily because of India’s growing appeal as a business destination. In the latest World Bank rankings, India jumped 30 positions to rank as the top 100th country in the world in terms of ease of doing business. Moreover, prime minister Narendra Modi’s recent plans of injecting cash into state-run banks saddled with bad loans might lead to a boom in foreign investment. This has in turn led to a rally in Indian stocks.


More Gains Ahead?


Currently, EPI has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook. Moreover, it has a weighted alpha of 30.8.  So, there is a promising outlook ahead for those who want to ride this surging ETF a shade further.


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