Australia. Australia was basically unfazed by the recession, only experiencing one quarter of GDP contraction, and the country was the first G-20 nation to tighten interest rates. Economists project that Australia’s economy will return to a 3.75% growth rate in 2010 as export demand and mining recovers. [Australia on a Roll; 4 ETFs to Play It.]
Australia is the fourth-largest producer of coal globally and fourth-largest producer of gold globally. The country is also one of the top 10 exporters to China and its share of exports to China is quickly growing.
IQ Australia Small Cap ETF (NYSE Arca: KROO). KROO tries to reflect the performance of the IQ Australia Small Cap Index, which seeks to provide investors with the means to track the overall performance of small-cap Australian companies. The fund has 100 holdings and has an expense ratio of 0.69%.
Materials and consumer discretionary make up the biggest portion of the fund, at 26.9% and 24.6%, respectively. Industrials are 10.7% and financials are 10.2%.
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