Market Performance - India's NIFTY 50 index has experienced a decline of approximately 0.47% month-to-date but has shown signs of recovery with a 0.18% gain over the past five sessions and a 0.57% increase on Friday alone [1] - The NIFTY 50 has achieved a year-to-date gain of 10.19% and a 6.43% rise over the past six months, indicating a positive economic outlook [2] Investment Opportunities - Global fund houses are increasingly attracted to India's $3.3 trillion potential, with multinational companies listing their India units, enhancing the primary market and creating more investment opportunities [3] - The shift of household savings into financial assets is accelerating market inflows, benefiting asset managers and creating opportunities for fund houses as more retail investors enter the market [4] Mutual Fund Industry Growth - Bain & Company projects that retail investor-driven assets in India's mutual fund industry will grow from 45 trillion rupees in fiscal year 2025 to 300 trillion rupees ($3.3 trillion) by 2035, highlighting significant growth potential [5] Big Tech Investments - Major tech companies are investing billions in India, with Microsoft and Amazon pledging over $50 billion for cloud and AI infrastructure [6] - Microsoft plans to invest $17.5 billion over the next four years, while Amazon has announced an additional $35 billion investment, building on a previous $40 billion investment [7] Data Center Market Potential - India aims to leverage its IT expertise to develop enterprise-level AI applications, presenting substantial opportunities for Big Tech, with favorable conditions for large-scale data center development [8] - The convergence of global cloud providers, AI innovators, and domestic digitalization positions India as one of the world's most promising data center markets [9] Future Equity Outlook - Jefferies forecasts that India's equities will outperform broader emerging-market economies in 2026, with the NIFTY 50 expected to reach 28,300, representing an upside of about 8.65% from current levels [10] Investment Vehicles - Several India ETFs are highlighted for investors looking to capitalize on the country's optimistic outlook, including iShares MSCI India ETF (INDA), WisdomTree India Earnings Fund (EPI), and others [11][13] - INDA has the largest asset base of $9.44 billion and is the most liquid option, making it suitable for active trading strategies [14]

Core Insights - The WisdomTree India Earnings ETF (EPI) is a smart beta ETF that debuted on February 22, 2008, providing broad exposure to the Asia-Pacific (Emerging) ETFs category [1] - Smart beta ETFs aim to outperform traditional market cap weighted indexes by using alternative weighting strategies based on fundamental characteristics [2][3] - EPI has amassed over $2.9 billion in assets, making it one of the largest ETFs in the Asia-Pacific (Emerging) ETFs space [5] Fund Details - EPI is managed by WisdomTree and seeks to match the performance of the WisdomTree India Earnings Index, which measures the performance of profitable companies incorporated and traded in India [5][6] - The fund has an annual operating expense ratio of 0.84%, which is relatively high compared to other options in the market [7] - EPI has a 12-month trailing dividend yield of 0.27% [7] Holdings and Sector Exposure - The fund's holdings are primarily in US Dollar, accounting for approximately 116.47% of total assets, with significant positions in Wt India Investment Portfolio Inc and HDFC Bank Limited [8] - The top 10 holdings represent about 205.13% of total assets under management, indicating a concentrated investment strategy [9] Performance Metrics - As of September 19, 2025, EPI has added approximately 0.51% year-to-date but is down about -7.73% over the past year [11] - The ETF has traded between $40.08 and $50.82 in the last 52 weeks, with a beta of 0.48 and a standard deviation of 15.12% over the trailing three-year period, categorizing it as a medium-risk investment [11] Alternatives - Other ETFs in the space include Franklin FTSE India ETF (FLIN) and iShares MSCI India ETF (INDA), which have lower expense ratios and larger asset bases [12][13] - FLIN has $2.5 billion in assets with an expense ratio of 0.19%, while INDA has $9.45 billion with an expense ratio of 0.62% [13]