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Is WisdomTree India Earnings ETF (EPI) a Strong ETF Right Now?
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Designed to provide broad exposure to the Asia-Pacific (Emerging) ETFs category of the market, the WisdomTree India Earnings ETF (EPI - Free Report) is a smart beta exchange traded fund launched on 02/22/2008.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking 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
EPI is managed by Wisdomtree, and this fund has amassed over $827.02 million, which makes it one of the larger ETFs in the Asia-Pacific (Emerging) ETFs. Before fees and expenses, this particular fund 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the most expensive products in the space, this ETF has annual operating expenses of 0.84%.
It's 12-month trailing dividend yield comes in at 5.67%.
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.
Taking into account 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 37.28% of its total assets under management.
Performance and Risk
The ETF has lost about -0.09% so far this year and it's up approximately 3.60% in the last one year (as of 05/22/2023). In the past 52-week period, it has traded between $29.42 and $34.33.
The ETF has a beta of 0.72 and standard deviation of 18.82% for the trailing three-year period, making it a medium risk choice in the 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 $583.74 million in assets, iShares MSCI India ETF has $4.69 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?
Designed to provide broad exposure to the Asia-Pacific (Emerging) ETFs category of the market, the WisdomTree India Earnings ETF (EPI - Free Report) is a smart beta exchange traded fund launched on 02/22/2008.
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.
Investors who believe in market efficiency should consider market cap indexes, as they replicate market returns in a low-cost, convenient, and transparent way.
If you're the kind of investor who would rather try and beat the market through good stock selection, then smart beta funds are your best choice; this fund class is known for tracking 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
EPI is managed by Wisdomtree, and this fund has amassed over $827.02 million, which makes it one of the larger ETFs in the Asia-Pacific (Emerging) ETFs. Before fees and expenses, this particular fund 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
Expense ratios are an important factor in the return of an ETF and in the long-term, cheaper funds can significantly outperform their more expensive cousins, other things remaining the same.
With one of the most expensive products in the space, this ETF has annual operating expenses of 0.84%.
It's 12-month trailing dividend yield comes in at 5.67%.
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.
Taking into account 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 37.28% of its total assets under management.
Performance and Risk
The ETF has lost about -0.09% so far this year and it's up approximately 3.60% in the last one year (as of 05/22/2023). In the past 52-week period, it has traded between $29.42 and $34.33.
The ETF has a beta of 0.72 and standard deviation of 18.82% for the trailing three-year period, making it a medium risk choice in the 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 $583.74 million in assets, iShares MSCI India ETF has $4.69 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.