Germany’s rebound will reward investors

Article Excerpt

The German economy was recovering in the first quarter of 2022. Then came the Russian invasion of Ukraine, and that has dampened the country’s recovery. The war exacerbates supply-chain disruptions, pushing up commodity prices and weighing on industrial production. Still, Germany’s strong, ongoing government response to the pandemic sets its diversified, high value-added and export-oriented economy up for strong gains as global economies normalize. Here is one ETF that provides exposure to the top public companies in Germany. ISHARES MSCI GERMANY ETF $25.24 (New York symbol EWG; TSINetwork ETF Rating: Aggressive; Market cap: $1.7 billion) invests in publicly listed German companies. Financial companies account for 20% of the fund’s assets, while Consumer Cyclicals (18%), Industrials (14%), Technology (14%), Healthcare (13%), and Basic Materials (10%), are other key segments. The ETF holds a portfolio of 61 stocks; the top 10 make up 52% of its assets. Top holdings include SAP SE (technology; 8.6%), Siemens AG (Industrials, 7.6%), Allianz (Financial services, 7.5%), Bayer (Healthcare, 5.5%), Deutsche Telecom (Communications, 4.7%)…