Is WisdomTree India Earnings ETF (EPI) a Strong ETF Right Now?

The WisdomTree India Earnings ETF (EPI), a fundamentally weighted smart beta fund with over $2.9 billion in AUM targeting profitable Indian companies, features a high expense ratio of 0.84% and has recorded a 7.73% decline over the past year (as of 09/19/2025). Despite its diversification across 538 holdings and medium risk profile, EPI's cost and recent underperformance make it less competitive compared to lower-expense alternatives like Franklin FTSE India ETF (FLIN, 0.19%) and iShares MSCI India ETF (INDA, 0.62%). The article also highlights unusual reported asset allocations, including Us Dollar at 116.47% and the top 10 holdings at 205.13% of total assets.

Analysis

The WisdomTree India Earnings ETF (EPI) is a smart beta fund with substantial assets under management at over $2.9 billion, utilizing a fundamentally-weighted strategy based on the earnings of profitable Indian companies. Despite its significant size and diversification across 538 holdings, the fund's value proposition is challenged by several factors. Its expense ratio of 0.84% is notably high for the category, creating a significant performance hurdle. This is compounded by recent underperformance, with the ETF declining 7.73% over the past year as of September 19, 2025, and offering a minimal trailing dividend yield of 0.27%. While its three-year beta of 0.48 and standard deviation of 15.12% classify it as a medium-risk option, this has not resulted in capital preservation. Furthermore, the article reports highly anomalous holdings data, with US Dollar exposure at 116.47% and the top 10 holdings constituting 205.13% of total assets, raising concerns about data integrity. Competing funds such as the iShares MSCI India ETF (INDA) and Franklin FTSE India ETF (FLIN) offer exposure with substantially lower expense ratios of 0.62% and 0.19% respectively, positioning EPI as an expensive and underperforming choice in a competitive landscape.

Key Decisions for Investors

• Given the fund's high 0.84% expense ratio and a 7.73% decline in the past year, investors seeking Indian equity exposure should evaluate lower-cost alternatives like FLIN and INDA, which may offer a more efficient vehicle for market participation.
• Current holders of EPI should reassess their position, as the fund's smart-beta strategy has not delivered outperformance relative to its high fees, and the anemic 0.27% dividend yield provides little income to offset price depreciation.
• The anomalous reported holdings figures, such as a 205.13% concentration in the top 10 assets, are a significant red flag requiring immediate due diligence into the fund's actual portfolio composition and reporting accuracy before committing capital.
• Investors should be cautious of the fund's 'medium risk' profile, as its low beta of 0.48 has not protected against significant downside over the last year, questioning the effectiveness of its risk-adjusted return strategy.