As the global economy experiences worldwide economic slowdown, different exchange traded funds (ETFs) do not seem to be drawing to much attention to themselves.
Gary Gordon of ETF Expert points out that certain ETFs that are simply not shown any love. The iShares MSCI Australia Index Fund (EWA) is a fund that lacks attention and looks less attractive amid climbing fuel prices, growing mortgage payments and rising interest rates. With Australia looking less attractive by the minute, stimulus may be needed to keep slow growth from turning into no growth.
EWA is down 17.1% year-to-date, with its 35% weighting in financials and another 30% in materials. It’s down 5.3% in the last month.
The iShares Global Materials Fund (MXI) has also fallen to some hard times, despite some of its holdings reporting record earnings. MXI has simply been hit by sector rotation moving from strengths into weaknesses. Nearly every company is a winner, or will merge with a bigger winner. Investors feel that they could see a technical rebound, or at best, they believe fundamentals will drive the shares higher with belief in global economic expansion.