Making its debut on 02/22/2008, smart beta exchange traded fund WisdomTree India Earnings ETF (EPI) 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.
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.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Managed by Wisdomtree, EPI has amassed assets over $2.06 billion, making it one of the larger 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
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive cousins if all other fundamentals are 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 0.00%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
When you look at individual holdings, Reliance Industries Ltd (RIL) accounts for about 6.49% of the fund's total assets, followed by Icici Bank Ltd (ICICIBC) and Hdfc Bank Limited (HDFCB).
EPI's top 10 holdings account for about 34.35% of its total assets under management.
Performance and Risk
The ETF has lost about -5.68% and is down about -1.91% so far this year and in the past one year (as of 08/05/2026), respectively. EPI has traded between $39.59 and $46.96 during this last 52-week period.
EPI has a beta of 0.46 and standard deviation of 15.55% for the trailing three-year period, which makes the fund a medium risk choice in the space. With about 574 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) tracks FTSE INDIA CAPPED INDEX and the iShares MSCI India ETF (INDA) tracks MSCI India Total Return Index. Franklin FTSE India ETF has $2.7 billion in assets, iShares MSCI India ETF has $6.65 billion. FLIN has an expense ratio of 0.19% and INDA changes 0.61%.
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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WisdomTree India Earnings ETF (EPI): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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