Austria and its exchange traded fund (ETF) have benefited from the opening up of western and eastern Europe, more so than any other European Union member. iShares MSCI Austria (EWO) is the best play on this European country that is serving as a support for eastern European countries. Austria’s eastern and southern neighbors are entering the EU, putting this small country back in the center of the map, reports Carl Delfeld for ETFXRAY.

Austria’s trade with central and eastern Europe has jumped over the past 15 years, helping to lower the trade deficit. Direct investment from Austria into central and eastern Europe went from 0 in the 1990’s to $28 billion in 2004. This equals 8% of the country’s GDP. Ten years ago investment was focused on manufacturing, and now the majority goes to financial intermediation, property and services.

EWO is down 1.3% year-to-date and financials make up 42% of this ETF. While EWO is below its 200-day moving average, it may be one worth watching if you are interested in eastern Europe.

Tags: Austria, Eastern Europe, Europe, EWO, Media