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Topic: ETFs

ISHARES MSCI AUSTRALIA ETF $19.42


ISHARES MSCI AUSTRALIA ETF $19.42
(New York symbol EWA; buy or sell through brokers) is an ETF that holds 73 major Australian stocks.

The fund’s top holdings include Commonwealth Bank of Australia, 11.3%; Westpac Banking Corp., 8.6%; Australia and New Zealand Banking Group, 6.3%; National Australia Bank, 6.0%; BHP Billiton, 5.2%; CSL Ltd., 4.5%; Wesfarmers, 3.9%; Woolworths Ltd., 2.4%; Scentre Group, 2.1%; and Telstra Corp., 2.0%.

The ETF’s industry breakdown consists of Financials, 52.2%; Mining, 12.8%; Consumer Staples, 7.8%; Health Care, 6.6%; Industrials, 6.6%; Energy, 4.8%; Utilities, 2.7%; Telecommunications, 2.7%; and Consumer Discretionary, 2.4%.

The iShares MSCI Australia ETF was launched on March 12, 1996. It has a 0.48% expense ratio.

Australia benefits from its stable banking and political systems. It is also rich in natural resources. While low commodity prices have hurt the country’s economy, its proximity to Asian markets, including India and China, gives it strong long-term prospects.

iShares MSCI Australia ETF is a buy.

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