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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?
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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of 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
The fund is managed by Wisdomtree. EPI has been able to amass assets over $3.88 billion, making it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs. EPI seeks to match the performance of the WisdomTree India Earnings Index before fees and expenses.
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 this ETF, which makes it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 0%.
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.
Taking into account individual holdings, Reliance Industries Ltd (RIL) accounts for about 6.84% of the fund's total assets, followed by Hdfc Bank Limited (HDFCB) and Icici Bank Ltd (ICICIBC).
The top 10 holdings account for about 37.11% of total assets under management.
Performance and Risk
So far this year, EPI has added about 15.95%, and it's up approximately 31.87% in the last one year (as of 10/24/2024). During this past 52-week period, the fund has traded between $35.41 and $50.82.
EPI has a beta of 0.81 and standard deviation of 16.62% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 478 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 $1.71 billion in assets, iShares MSCI India ETF has $10.84 billion. FLIN has an expense ratio of 0.19% and INDA charges 0.65%.
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?
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.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
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.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of 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
The fund is managed by Wisdomtree. EPI has been able to amass assets over $3.88 billion, making it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs. EPI seeks to match the performance of the WisdomTree India Earnings Index before fees and expenses.
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 this ETF, which makes it one of the most expensive products in the space.
It has a 12-month trailing dividend yield of 0%.
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.
Taking into account individual holdings, Reliance Industries Ltd (RIL) accounts for about 6.84% of the fund's total assets, followed by Hdfc Bank Limited (HDFCB) and Icici Bank Ltd (ICICIBC).
The top 10 holdings account for about 37.11% of total assets under management.
Performance and Risk
So far this year, EPI has added about 15.95%, and it's up approximately 31.87% in the last one year (as of 10/24/2024). During this past 52-week period, the fund has traded between $35.41 and $50.82.
EPI has a beta of 0.81 and standard deviation of 16.62% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 478 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 $1.71 billion in assets, iShares MSCI India ETF has $10.84 billion. FLIN has an expense ratio of 0.19% and INDA charges 0.65%.
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.