Awaiting WisdomTree India ETF

Feb. 4.08 | About: WisdomTree India (EPI)

With all the exchange-traded choices for investors eager to tap into the China story, I have been waiting for some action on the India ETF front.

The WisdomTree family of exchange-traded funds will be launching a new India ETF (NYSEARCA:EPI) later this month. Here is what looks like to be the advantages over current India ETFs.

The companies in the EPI basket will be weighted by earnings rather than market value. Hopefully, that will lead to a less top heavy portfolio. In addition, the index will contain about 150 companies.

It will be the first India country ETF that gives U.S. investors access to local shares in the Indian market with no derivatives.

As an ETF, EPI will likely be a tax efficient structure while ETN tax status is uncertain after ruling on Currency ETNs and implications for equities and commodities ETNs.

I am very curious about what companies get into the ETF basket as well as the pattern of weightings. The real action and value in India is at the smaller company side of the market, not the mega caps which remain overvalued.