Core Viewpoint - Retirees are increasingly seeking international diversification through India, a rapidly growing economy, with a focus on the WisdomTree India Earnings Fund (EPI) which emphasizes earnings over market capitalization [2][3]. Fund Methodology - EPI employs an earnings-weighted methodology that allocates holdings based on their contribution to total index earnings, favoring value-oriented, cash-generating businesses in sectors like financials, energy, and materials [3]. - Key holdings in EPI include Reliance Industries and HDFC Bank, which are among India's most profitable companies, providing a valuation discipline that traditional market-cap-weighted indices lack [3]. Performance Analysis - Since its inception in February 2008, EPI has managed approximately $2.7 billion in assets with an annual expense ratio of 0.84% [4][6]. - EPI has outperformed the iShares MSCI India ETF (INDA) over various time horizons, returning 168.76% over ten years compared to INDA's 117.83%, and 46.73% over five years against INDA's 26.27% [4][6]. - The earnings-weighted approach has provided a structural advantage by directing investments toward profitable companies rather than high-valuation growth stocks, benefiting long-term investors [4]. Recent Challenges - EPI has faced a decline of 6.5% year-to-date as of early March 2026, primarily due to foreign capital outflows from Indian equities, despite resilient corporate earnings in India [5][6]. - The potential for recovery may depend on macroeconomic factors such as progress in U.S.-India trade agreements and stabilization of the Indian rupee, rather than the fund's earnings filter [5].