ETF Spotlight: WisdomTree India Earnings Fund (EPI)

July 22nd at 2:00pm by Tom Lydon

ETF Spotlight ETF Spotlight on WisdomTree India Earnings Fund (EPI), part of a weekly series. Assets: $384.5 million

Objective

EPI eeks to track the performance of the WisdomTree India Earnings Index.

How It Works

EPI was the first of two India-focused ETFs (the other being PowerShares India (PIN)) to launch within a few weeks of one another. The fund measures the performance of companies incorporated and traded in India. Components have to be profitable and eligible for purchase by foreign investors.

The top sectors in the fund include energy (24.6%), materials (13.7%) and software and services (13.5%). The majority of companies are large-cap, with a 52% weighting. Mid-caps have a 29.8% weighting, while small-caps are 17.9%.

The Latest News

  • India’s recovery is likely to be aided by favorable external factors such as a pickup in trade and resumption of capital flow into the stock market.
  • A revival in exports and the  effects of previous fiscal and monetary policies will also help the nation’s economy to expand.
  • The most recent decline in commodities prices, most notably crude oil, will shrink oil import bills reducing the nation’s trade gap.
  • The cut in factory levies and increase of employee salaries by the federal government will aid in the health of India’s economy.
  • India’s Finance Minister Pranab Mukherjee believes the economy is on track for a 9% growth rate in 2009, writes P. Vijian for Bernama. The government will be promoting inclusive growth and reforms will be aimed toward the rural sector.
  • Mukherjee discussed plans for the poor, including rural employment and overhauling fertilizer subsidies to favor farmers, which would cost $8.1 billion for the fiscal year, report Vikas Bajaj and Heather Timmons for The New York Times. He also plans on reducing the population in severe poverty by half within five years. In 2005, an estimated 27.5% were reported to suffer from poverty.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

Tickers

EPI PIN