5-Star ETFs Poised to Pop: WisdomTree India Earnings Fund

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the WisdomTree India Earnings Fund (NYS: EPI) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at the WisdomTree India Earnings ETF and see what CAPS investors are saying about the ETF right now.

WisdomTree India Earnings facts


February 2008

Total Assets

$856.8 million

Index Description

Seeks investment results that correspond to the price and yield performance of the WisdomTree India Earnings Index.

Expense Ratio


Dividend Yield


1-Year / 3-Year Annualized Returns

(30.7%) / 16%

Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight

Infosys (NAS: INFY) (7%)

Tata Motors (NYS: TTM) (3.5%)

ICICI Bank (NYS: IBN) (2.8%)


PowerShares India (NYS: PIN)

iShares S&P India Nifty 50 (NAS: INDY)

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 98.5% of the 283 members who have rated WisdomTree India Earnings believe the ETF will outperform the S&P 500 going forward. These bulls include All-Stars OrionNebula and britpick, both of whom are ranked in the top 10% of our community.

This past summer, OrionNebula tapped the WisdomTree ETF as an obvious bargain opportunity "I don't see how an index of profitable Indian companies fails to outperform the S&P over time, especially with interest rates already very high there, typically a good time to buy stocks, while people are freaking out."

WisdomTree India Earnings, in particular, sports a portfolio whose stocks average a cheapish forward P/E of 9.5. That represents a discount to other India ETF plays like PowerShares India (12.1) and iShares S&P India Nifty 50 (14.5).

CAPS member britpick elaborates on the WisdomTree ETF's bull case:

India has spent much of the recent past becoming the service centre to the rest of the world, but is progressively opening its markets to other countries. [Is] looking to focus on building its infrastructure to meet the growing demand created by the growing wealth of the nation. It is looking to world class partners to assist in the evolution of its capabilities and sustainability, especially in the growth of its natural resources industry.

What do you think about EPI, or any other ETF for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional ETFs is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackWisdomTree India Earnings?Add it to your watchlist.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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