The German exchange traded fund (ETF) iShares MSCI Germany (EWG) is up 17% year-to-date due to the stocks in its basket. Top company holdings are multinational first-class, including Siemens, Daimler Chrysler, BASF and Deutsche Bank. This ETF has surprised many, as Germany has been seen to be dependent on global growth. However, it’s own economy is starting to show some signs of life as well.  Carl Delfeld for ETFXRAY.com says improvement is coming from increased spending and a stronger German consumer. Domestically, investment is strong, which will serve as another propeller for this country and its stock market. Falling unemployment should also help secure this theory. Germany is also solid as one of the world’s largest exporters.

News today of Daimler selling the Chrysler portion of the company, helped boost Daimler Chrysler (DCX) stock, which makes up 7% of EWG.

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For full disclosure, some of Tom Lydon’s clients own EWG.

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.