ISHARES MSCI GERMANY FUND $31.68 (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 Bayer (diversified chemicals), 8.8%; Siemens (engineering conglomerate), 8.5%; BASF (chemicals), 8.3%; Daimler (autos), 7.1%; Allianz (insurance), 6.2%; SAP (software), 5.8%; Deutsche Telekom, 3.7%; Deutsche Bank, 3.6%; and BMW, 3.3%.
The fund’s industry breakdown includes: Consumer Discretionary, 21.9%; Financials, 16.4%, Industrials, 14.3%; Materials, 14.2%; Information Technology, 7.4%; Utilities, 4.4%; Health Care, 4.1%; Consumer Staples, 4.0%; and Telecommunication Services, 3.9%.
The fund was launched on March 12, 1996. Its expense ratio is 0.48%.
Exports account for 45% of Germany’s economy. The slowdown in the U.S., one of Germany’s major markets, hurt its growth in 2013. As well, concerns were raised about the cost of bailing out Greece and other European countries, such as Spain and Portugal. However, the low euro is a big plus for German exports, and the country’s economy is steadily improving.
iShares MSCI Germany Fund is a buy.