Tap Australia’s bright outlook with this ETF

Article Excerpt

The Australian economy rebounded strongly in the wake of the pandemic. In the near term, though, it now faces challenges from still-high inflation, which is hurting consumer spending. In addition, it faces uncertain global growth amid still-elevated interest rates. However, steady global demand for commodities will boost Australian exports. That, in turn, should help to offset risks such as the ongoing tension between the U.S. and China, and the shortage of skilled workers that continues to drive up Australian labour costs. ISHARES MSCI AUSTRALIA ETF $24.29 (New York symbol EWA; TSINetwork ETF Rating: Conservative; Market cap: $1.9 billion) tracks the performance of a basket of Australian-listed companies. Financial Services account for 36% of its assets, while Basic Materials (22%), Healthcare (10%), Energy (6%), and Consumer Cyclicals (6%) are other key segments. The ETF holds a portfolio of 58 stocks. The top 10 holdings make up 58% of its assets. They are BHP Group (Basic Materials; 11.7%), Commonwealth Bank (Financials; 10.4%), CSL Ltd. (Healthcare; 7.3%), National…