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!


The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.