WisdomTree India Earnings Fund (AMEX:EPI)

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.

Largest democracy in world. Growing middle class. Will likely surpass China in population.

My initial position was a 1% of portfolio position, very small. I just upped that position today by 133%, still a small position. This is just a normal monthly addition.

India has spent much of the recent past becoming the service centre to the rest of the world, but is progressively opening it markets to other countries, and 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 capabilites and sustainability, especially in the growth of its natural resources industry.

Yesterday I wrote about planning to use ETFs for diversification outside the developed world. The problem with these underdeveloped countries goes side to side with their greatest strength. They are undeveloped in everyway, even in the regulatory section. I mean what is the point with great fundamentals if you can´t trust em. Lets take China for example. There are tens or hundreds of ADRs listed in USA, but if we take away the biggest companies we are left with tons of suspected frauds, shady auditors and the whole reverse merger question mark.

I don´t know if this is also a problem in India but even if it isn´t, there is still one problem left. The underdeveloped goes for the financial culture as a whole. Its a pain in the ass to screen, find, select the best and after that trying to find information about your selected stocks. It just takes too much time to get the same amount of info and due diligence done compared to what could be done in the same time when analysing US or European companies.

But the developing countries are definately a place to be invested in so hence the ETFs and for India I have selected EPI. EPI is re-balanced each september according to earnings yield so stocks that have low P/E ratios are given higher weight. Otherwise its an all sector all cap fund with a bit of a weighting towards energy (20%). What more is there to tell. If you like India, you´ll like EPI but you wont love the 0,88% they charge p.a.

http://nestortheinvestor.blogspot.com/2010/12/buying-epi-india-here-i-come.html

India blew out their growth projections this week. They have the largest population of any democracy in the world and are just itching to grow. Holding an ETF of its major companies is a great way to capitalize on India's emergence

India ETF per catoismymotor

India to Be Awash in Riches Because of the Rain

http://www.moneynews.com/Advani/ashish-advani-india-monsoon/2010/09/08/id/369509

This story basically explains that agriculture is a huge factor in India's economy, and the strong monsoon season this year should push GDP even higher than expected.

See the YTD. This is where all the money is Fools!

n/a

not heavily correlated to USA, emerging economy.

The capital is flowing into India once again, growth is projected to be 6.4% this year, and manufacturing will become a bigger piece of India's GDP pie than agriculture for the first time in history.

While it won't outpace China, India is a more stable long-term investment because its domestic demand is greater, thus making it less susceptible to changes in global trade demand.

While it isn't without its problems, the Elephant is sure as hell a better bet than the advanced economies for 2010, while being less risky than the Dragon.

Indian EFT

WisdomTree’s fund, as its name implies, is based on an earnings-weighted index of 150 companies. It’s made up of companies listed on the Indian National Stock Exchange or the Mumbai Stock Exchange that issue ordinary common shares that are eligible for foreign ownership. Each company has a minimum $200 million market cap, $5 million in earnings in the fiscal year before the screening date and a price-to-earnings ratio (P/E) of at least 2. Each September, the index is rebalanced.

India is a growing economy, if you scared of what the U.S. economy is doing you can still invest in other countries. India is one of better economies right now.

not bc i want to enter here but i will and average no matter what. I have to respect it.

i read a very long and interesting article.. that I ought to be able to remember to quote.. sorry.... that discussed the impact of demographics...more precisely, age groups.... and argued that India, despite its poor infrastructure will be the next region to watch in the next 20-50 years.

india is coming!

India, India - cheering for India.