Land Down Under Is Up with ETFs
October 17th at 3:00pm by Tom Lydon
The Australian stock market is rising, and exchange traded funds (ETFs) that track the country’s resources are increasing too. Global mining firms are all about the land down under, as its natural resources are ripe and ready for the rest of the world. Copper, lead and nickel are on the rise, and demand from China is heavy. Trang Ho for Investor’s Business Daily reports that strong sales in copper, iron ore, coal and petroleum have prompted the world’s largest diversified resources company, BHP Billiton (BHP), to lift its second-half 2007 guidance above analyst views. BHP is the largest holding at 14.0% in the iShares MSCI Australia Index (EWA), which is up 37.6% year-to-date.
Another ETF that is benefiting from BHP’s success is the WisdomTree International Basic Materials (DBN) that has BHP as its second-largest holding at 7.9% and a 21% exposure to Australia. Year-to-date, it’s up 38.8%. iShares S&P Global Materials (MXI) also has BHP as its top holding at 6.2% and has a 9.8% exposure to Australia. It’s up 41.6% year-to-date.
