ISHARES MSCI GERMANY FUND $22.94 (New York Exchange symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.
This index aims to replicate 85% of the total market capitalization of the German stock market. The remaining 15% is unavailable for investment, partly due to limitations on foreign ownership.
The ETF’s top holdings are Siemens (engineering conglomerate), 9.2%; BASF (chemicals), 8.5%; Bayer (diversified chemicals), 8.0%; SAP (software), 7.4%; Allianz (insurance), 6.2%; E.ON (energy), 4.6%; Deutsche Bank, 4.5%; Deutsche Telekom, 3.6%; and Linde AG (industrial gases), 3.5%.
The fund’s industry breakdown is as follows: Consumer Discretionary, 17.3%; Financials, 16.4%; Materials, 15.7%; Industrials, 13.7%; Health Care, 13.0%; Information Technology, 8.4%; Utilities, 7.2%; Consumer Staples, 4.1%; and Telecommunication Services, 3.6%.
The fund was launched on March 12, 1996. It has an expense ratio of 0.51%.
Exports account for roughly 45% of Germany’s economy. The slowdown in the U.S., one of its major markets, has hurt Germany’s growth. As well, concerns are being raised about the cost of bailing out Greece and other European countries, such as Italy, Spain and Portugal. However, the low euro is a big plus for German exports, and the country’s longer-term outlook is positive.
iShares MSCI Germany Fund is a buy.
