Aussie ETF EWA Looks Up

The market-cap weighted iShares MSCI Australia (EWA) aims to represent 85% of the country’s stock market in one exchange traded fund (ETF). The 90-stock index returned 89% over the past three years and EWA has gained 29% over the past 12 months. The largest holding is BHP Billiton (BHP) which accounts for 11% of assets. This is the world’s largest miner that recently hit a new high due to a rally in copper, gold and other metals. 

Trang Ho for Investor’s Business Daily reports Australian stocks hit a record last week after the central bank kept it’s benchmark interest rate at 6.25%, the highest in six years. The annual inflation rose 3.3%, while core inflation was around 3%. Furthermore, this is the 16th year in a row without a recession because exports take over as the key driver. Consumer spending is projected to rise 3% this year, while rising stocks and house prices will undermine the strong recovery in the retail sector as well. Looking good down under!