The New Zealand stock market may be small and not very liquid, but it does offer exchange traded funds (ETFs).  One of which is the NZX Mid Cap Index (MDZ.NZ) following the mid-cap companies on the New Zealand stock market.  The top holdings include finance, energy, health care and consumer companies.

Agriculture plays a key role in the NZ economy and there is a nice balance between industry and services.  Per capita income continues to rise steadily.  Unfortunately, during the past year the economy has slowed, writes Carl Delfeld at Chartwell Advisor. The currency (the kiwi) is overvalued and there is also a large account deficit approaching 10% GDP.

But as Delfeld points out, the country should not be overlooked, particularly when the currency goes the other way, as it can get very cheap.  This will be a good opportunity for tourism.  Perhaps by then there will be a Kiwi ETF available in the U.S. markets.

Tags: Asia, Currency ETFs