This Australia ETF taps a bright future

Article Excerpt

Australia’s economy looks set for steady expansion this year. Pent-up spending and faster wage growth should spur household spending and domestic consumption. Meanwhile, the country’s resource-heavy export sector will benefit from sustained global demand for commodities and the reopening of borders. At the same time, though, the potential for more global supply disruptions, plus tensions with China, poses challenges. ISHARES MSCI AUSTRALIA ETF $20.97 (New York symbol EWA; TSINetwork ETF Rating: Aggressive; Market Cap: $1.8 billion) tracks the performance of a basket of Australian listed companies. Financial Services account for 33% of its assets, while Basic Materials (25%), Healthcare (10%), Energy (6%), and Consumer Cyclicals (5%%) are other key segments. The ETF holds a portfolio of 69 stocks. The top 10 holdings make up a high 59% of its assets. They are as follows: BHP Group (Basic Materials; 13.4%), Commonwealth Bank (Financials; 10.4%), CSL Ltd. (Healthcare; 7.7%), National Australia Bank (Financials; 5.9%), WestPac (Financials; 4.9%), Australia and New Zealand Bank (Financials; 4.1%), Macquarie Group (Financials;…