ISHARES MSCI GERMANY FUND $22.95 (New York Exchange symbol EWG; buy or sell through brokers) is an ETF that aims to track 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 fund’s top holdings are Siemens AG (engineering conglomerate), 9.2%; BASF (chemicals), 8.9%; SAP (software), 6.9%; Bayer (diversified chemicals), 6.4%; Daimler AG (automobiles), 6.4%; Allianz (insurance), 6.2%; Deutsche Bank AG, 4.9%; E.ON (energy), 4.6%; Deutsche Telekom, 3.7%; and BMW AG (automobiles), 3.5%.
The fund’s industry breakdown is as follows: Consumer Discretionary, 18.6%; Financials, 16.9%; Materials, 16.3%; Industrials, 13.8%; Health Care, 11.3%; Information Technology, 8.4%; Utilities, 7.2%; Telecommunication Services, 3.7%; and Consumer Staples, 3.5%.
The fund was launched on March 12, 1996. It has an expense ratio of 0.51%.
Exports account for 45% of Germany’s economy. The slowdown in the U.S., one of its major markets, has hurt the country’s exports. In addition, concerns are being raised about the cost of bailing out Greece and other struggling European countries, such as Italy, Spain and Portugal. However, the low euro is a big plus for German exports, and the longer-term outlook for the country’s economy is positive.
iShares MSCI Germany Fund is a buy.
