Seeking an ETF with an exciting outlook? Few areas in international equities seem to offer as much excitement and opportunity as investing in India. The emerging market has risen in prominence as China has struggled. Boosted by underlying trends benefiting emerging markets overall, India has also seen recent foreign investing news that underscores the case for an India ETF like the WisdomTree India Earnings Fund (EPI).
The emerging market landscape right now is benefitting from appealing valuations and changing supply chains. Indeed, while the U.S. is still right in the middle of a process of dealing with inflation, many emerging markets have already gotten through the up and down of rates and inflation. Together, those factors have contributed to the current case for emerging market investing.
India, specifically, benefits from those trends as well as some recent highlights. The country looks set for a $100 billion investment deal with Switzerland and Norway. It also looks set for a further $4 billion to $5 billion in investments from a UAE wealth fund.
Why might investors be looking to India compared to other emerging markets? Its large and growing middle class is well-educated, with a youthful consumer base too. The country’s combination of software industries and natural resources appeal.
EPI offers a spin on India investing that may intrigue investors. EPI tracks the WisdomTree India Earnings Index and comes with an 0.85% annual expense ratio. It sets itself apart from other India strategies by weighting firms by earnings rather than simple market cap.
That approach has helped EPI return 20.2% over the last three months and 37.8% over the last one year. Both returns outperform their ETF Database Category and FactSet Segment averages. EPI could be the right India ETF to help investors play a bright start to 2024 for the emerging market.
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