EPI ETF Explained: Returns, Expense Ratio, Holdings, and Alternative ETFs
An ETF that holds profitable Indian companies using an earnings-weighted approach. Stock weights are determined by each company's share of earnings rather than by market capitalization.
SubscribeWhat Is This ETF?
This is an earnings-weighted Indian equity ETF that tracks the WisdomTree India Earnings Index. Through an annual screening process, it selects profitable companies listed on Indian exchanges that are available to foreign investors, and each stock's weight is determined by its share of earnings rather than by market capitalization.
It suits investors who want to participate in India's economic growth while taking a value-tilted approach through exposure to the earnings factor.
It is a passively managed (index-tracking) ETF launched by WisdomTree in 2008.
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | WisdomTree India Earnings Index |
| Management Style | Passive (index-tracking) |
| Rebalancing Frequency | Annually |
| Dividend Frequency | Annual dividend |
| Total Expense Ratio | 0.84% |
The fund selects profitable Indian companies and weights them by their share of earnings, so companies with stronger earnings power automatically receive higher weights. Compared with market-cap weighting, this eases the over-concentration in large growth stocks and provides systematic exposure to the earnings factor.
- Weighted by share of earnings rather than market cap: systematic exposure to the earnings factor
- Annual screening includes only profitable companies and automatically excludes loss-making ones
Size and Costs
Assets under management (AUM) stand at $1.8B, and the expense ratio is 0.84% per year.
Its fee is somewhat higher than that of INDA (iShares MSCI India), which tracks the same Indian market, but its distinguishing feature is its unique factor exposure through earnings weighting. Its liquidity ranks among the top of India-focused ETFs.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeReflecting the structural growth of the Indian economy, the fund has shown a long-term upward trend. In the short term, it is affected by rupee exchange rate movements, the Reserve Bank of India's monetary policy, and global emerging-market investor sentiment.
Inflows tend to rise as India's weighting within emerging markets expands, while during periods of dollar strength, currency effects can increase outflow pressure.
Strengths and Weaknesses
Its earnings-factor-based exposure to India is a strength, while a somewhat higher expense ratio and currency risk are the main drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
INDA, shown in the table, is a direct competitor that tracks the MSCI India Index using market-cap weighting and carries a lower fee, while EWZ, MCHI, and FXI are emerging-market ETFs with similar structures covering Brazil and China. As direct substitutes, investors can also consider INDA, which tracks the same Indian market, and EEM, which diversifies across emerging markets as a whole. Investors who want to focus more on Indian growth stocks may also compare INDY.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 EWT | iShares MSCI Taiwan ETF | $105.99 | -2.7% | $11.9B | 0.59% | 0.96% | +62.5% |
 EWZ | iShares MSCI Brazil ETF | $33.14 | -1.4% | $10.0B | 0.59% | 4.09% | +6.7% |
 INDA | iShares MSCI India ETF | $47.41 | +1.3% | $5.7B | 0.61% | - | -13.2% |
 MCHI | iShares MSCI China ETF | $48.96 | -0.2% | $5.5B | 0.59% | 2.24% | -25.2% |
 FLTW | Franklin FTSE Taiwan ETF | $102.05 | -2.5% | $4.9B | 0.19% | 1.61% | +62.6% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| IBN | ICICI Bank Ltd ADR | 0.11% | $29.13 | +1.5% | $104.6B | 16.6 | 0.99% |
| HDB | HDFC Bank Ltd ADR | 0.10% | $21.80 | +1.2% | $112.1B | 13.0 | 1.97% |
| INFY | Infosys Ltd ADR | 0.06% | $12.20 | +0.9% | $49.5B | 15.0 | 5.04% |
 RDY | Dr. Reddy's Laboratories Ltd ADR | 0.01% | $14.11 | -0.3% | $11.8B | 38.8 | 0.58% |
| BAC | Bank Of America Corp | 0.01% | $51.14 | +0.6% | $354.0B | 12.2 | 2.35% |
 BMRC | Bank of Marin Bancorp | 0.01% | $28.80 | -0.3% | $466.4M | - | 3.47% |
Investor Checkpoints
Here are the points to review before investing in EPI. It is important to check in advance the triple currency structure unique to the Indian market, the fee level relative to the category, the annual rebalancing cycle, and the emerging-market regulatory environment.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the fee level against the category average | Higher than the category average |
| 💱 Triple Currency | Chain effect of won→dollar→rupee exchange rates | No currency hedge applied |
| 📅 Rebalancing Cycle | Annual earnings-based rebalancing structure | Updated annually |
| 🌏 Emerging Market Risk | India's regulatory and political environment and global emerging-market investor sentiment | Needs confirmation |
As an emerging market, India carries high regulatory and political uncertainty, and rupee exchange rate movements directly affect returns. There is also a structural limitation: with annual rebalancing, short-term earnings changes are not reflected immediately.
It is a option worth considering for investors who want to add earnings-factor exposure to India's economic growth. For those who prioritize lower fees, INDA is the better fit, while for those who want India's earnings-factor characteristics, EPI is the suitable choice.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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