ISHARES MSCI GERMANY FUND $29.42 (New York symbol EWG; buy or sell through brokers) tracks the stocks in the MSCI Germany Index.
This index aims to replicate 85% of the 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 Bayer (diversified chemicals), 9.9%; Daimler (autos), 7.5%; BASF (chemicals), 7.3%; Siemens (engineering conglomerate), 7.9%; Allianz (insurance), 8.2%; SAP (software), 5.3%; Deutsche Telekom, 4.7%; Deutsche Bank AG, 3.7%; BMW AG, 3.4%; and Volkswagen AG, 3.1%.
The fund’s industry breakdown includes: Consumer Discretionary, 20.7%; Financials, 17.4%; Health Care, 14.7%; Materials, 13.4%; Industrials, 13.3%; Information Technology, 7.3%; Utilities, 4.9%; Telecommunication Services, 4.7%; and Utilities, 3.7%.
The ETF was launched on March 12, 1996. Its expense ratio is 0.47%.
Weak European markets have slowed the German economy’s growth this year. Sanctions against Russia are also hurting German companies with a significant number of Russian customers. However, the low euro remains a big plus for German exports, and the long-term outlook for the country’s economy is sound.
iShares MSCI Germany Fund is a buy.