Tapping into Asian demand

Article Excerpt

ISHARES AUSTRALIA INDEX FUND $26.10 (New York symbol EWA; buy or sell through brokers), is an ETF that holds the 74 largest Australian stocks. Its MER is 0.53%. The fund’s top holdings include BHP Billiton, 15.3%; Commonwealth Bank of Australia, 8.6%; Westpac Banking Corp., 7.7%; Australia and New Zealand Banking Group, 6.4%; National Australia Bank, 6%; Rio Tinto, 3.7%; Wesfarmers, 3.5%; Woolworths, 3.3%; Newcrest Mining, 3.3%; and Woodside Petroleum, 3.0%. Australia benefits from its stable banking and political systems. It is also rich in natural resources, and its exports are in high demand in Asian markets, including India and China. Flooding in key mining and agricultural regions has slowed the country’s economic growth so far this year. To spur growth, the Reserve Bank of Australia is holding off on further interest rate increases. Australia’s economy is now expected to grow over 3% this year. iShares MSCI Australia Index Fund is a buy for aggressive investors. investors…