ISHARES MSCI GERMANY FUND $29.74 (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), 9.8%; Daimler (autos), 7.5%; BASF (chemicals), 7.1%; Siemens (engineering conglomerate), 6.9%; SAP (software), 6.1%; Allianz (insurance), 6.0%; Deutsche Telekom, 4.5%; Deutsche Bank AG, 3.5%; Volkswagen AG, 3.3%; and BMW AG, 3.1%.
The fund’s industry breakdown includes Consumer Discretionary, 22.1%; Financials, 17.6%; Health Care, 15.0%; Materials, 13.9%; Industrials, 11.9%; Information Technology, 6.9%; Telecommunication Services, 5.0%; Consumer Staples, 3.8%; and Utilities, 3.4%.
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.