WisdomTree has launched the WisdomTree India Earnings Ucits ETF, adding a fundamentally weighted India strategy to its emerging markets range.
The ETF seeks to track the price and yield performance, before fees and expenses, of the WisdomTree India Earnings Ucits Index and carries a total expense ratio of 0.55%. The fund is listed on Börse Xetra, Borsa Italiana and Six Swiss Exchange and the London Stock Exchange.
The proprietary index tracks a diversified basket of profitable Indian companies using a rules-based approach. Instead of weighting stocks by market capitalisation, it weights them by earnings, tilting the portfolio towards companies with stronger fundamentals and limiting exposure to more highly valued names.
India’s favourable demographics, urbanisation and a growing middle class are boosting demand across sectors including financial services, consumer goods, healthcare and technology. According to the asset manager, a domestic-demand-led growth model, coupled with supply chain diversification, government reforms, deeper capital markets and rapid digital adoption is supporting earnings growth.
Pierre Debru, head of research, Europe, WisdomTree, said: “India is one of the most exciting long-term growth markets globally. A fundamental earnings-based approach allows investors to access that growth by focusing on companies with strong and sustainable profitability rather than simply following market capitalisation. With our India Earnings Ucits ETF, investors can do this through a disciplined strategy focused on profitability and valuation. It’s a fundamentally driven approach that avoids the pitfalls of overconcentration or overvaluation often found in traditional benchmarks.”
Alexis Marinof, CEO, Europe, WisdomTree, added: “Our earnings-weighted approach provides investors with a differentiated and research-driven way to access India’s equity market while focusing on the fundamentals that matter most. As investors look for long-term growth opportunities, India’s domestic demand-led economy and structural growth drivers remain an important part of the conversation. This approach is rooted in the fundamentally weighted framework we pioneered when WisdomTree was founded and continues to inform our approach to intelligent ETF innovation today.”
