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.
Following a multiyear run in which Indian equities and related ETFs were emerging market leaders and among the best-performing ex-U.S. stocks, the group retreated in the first quarter even as other international markets sprang to life.
India's stocks have erased most of this year's losses, thanks to early signs of increased government spending and monetary easing.
A smart beta exchange traded fund, the WisdomTree India Earnings ETF (EPI) debuted on 02/22/2008, and offers broad exposure to the Asia-Pacific (Emerging) ETFs category of the market.
India's equity market has underperformed due to tariff fears, AI threats, and weak economic data, leading to a downgrade of EPI from buy to hold. EPI has lagged behind the iShares All-Country ex-US ETF by over 20 percentage points since August 2024, with a YTD return of -3%. Despite a low valuation multiple, EPI's technical chart indicates more downside, with support around $36-$37 and resistance at $47-$48.
With President-elect Trump set to take the oath of office in less than two weeks, and with 2025 in its early innings, advisors and investors are likely evaluating asset classes and ideas that could work well this year. Not surprisingly, following a now lengthy stretch of disappointment, broad-based emerging markets strategies aren't atop those lists.
Look at ETFs with exposure to India, as the growth outlook for the developing economy slows down, driven by internal and external headwinds.
India equities appear poised to top broader emerging markets gauges again in 2024, extending a now multi-year trend. Some market observers believe it could happen again next year.
The WisdomTree India Earnings ETF (EPI) made its debut on 02/22/2008, and is a smart beta exchange traded fund that provides broad exposure to the Asia-Pacific (Emerging) ETFs category of the market.
India is poised for economic growth with a young, skilled workforce, increasing affluence, and strong U.S. trade relations, especially under the Trump administration. WisdomTree India Earnings Fund ETF outperforms peers with a diversified portfolio, lower P/E ratios, and a strong track record since 2008, making it an excellent long-term investment. Risks include currency fluctuations, political instability, and the unpredictability of President Trump, but overall, India is expected to benefit from U.S. trade policies.
Indian stocks and the related ETFs cooled off in September and into October after Prime Minister Narendra Modi's National Democratic Alliance (NDA) didn't have the expected electoral success. This sparked a sell-off in previously hot Indian equities.
Despite a flawed index methodology, and some structural deficits, EPI has exhibited a compelling track record vs its largest peers. Indian equity ETFs are rarely available at compelling valuations, but EPI appears to buck the trend. Yet, despite that, we are not convinced this is the best time to go long on EPI; we proceed to elucidate on our reasoning.