Austria Knows Its Own Backyard, and ETF Benefits

May 30, 2008 at 10:00 am by Tom Lydon

2652171880 Improved feelings about the telecommunications and banking sectors in Austria delivered a boost to its exchange traded fund (ETF) on Wednesday, and it’s just the latest good news for the country.

Erste Bank (EBS.VI) was the beneficiary of improved sector sentiment, while Telekom Austria (TKA.VI) attracted those looking for a bargain, reports Peter Klopf for Thomson Financial. Both companies are components of the iShares MSCI Austria (EWO), at 16.9% and 9.8% of assets, respectively.

Year-to-date, the fund is up 5.2%, and Don Dion for Seeking Alpha doesn’t feel that Austria is any short-term story, thanks to smart moves the country’s companies have been making.

Many of the top Austrian companies are expanding into the under-developed economies of the former Soviet bloc, with successful results. The second-largest holding, OMV, has become central Europe’s biggest oil and gas supplier, and its modern filling stations in Bulgaria have actually played host to weddings.