The European economy has its fair share of troubles, but Germany’s exchange traded fund (ETF) is among those bucking the downtrend over the long-term.
A few of the positive things coming out of Germany that we’ve noticed recently include:
- A growth rate of 0.7%. While that’s not an impressive number on its face, considering the situation some of Germany’s neighbors are in, it’s a number that demonstrates Germany is moving in the right direction.
- German economic sentiment unexpectedly rebounded in November following a continued decline in the past two months, reports Besta Shankar for International Business Times. [Europe ETFs: The Cup Is Half Full.]
- Germany is said to have the most thriving and fastest growing economy in all of Europe. That’s a sharp turnaround from the pain Germany felt last year, when its ETF grew just 16.6%, reports Times of the Internet. [Germany ETF Emerges From the Crisis.]
Jack Ewing for The New York Times reports that now that it seems Germany’s economy is on firmer footing, the country’s council of economic experts issued a statement Wednesday warning political leaders not to undo the labor and tax policy changes that have helped the country regain its competitiveness. This support will help the economy gain traction.
Germany can be an appealing destination for investors seeking exposure to Europe’s more solidly positioned economies. Be aware of any contagion effect from the debt crises in Ireland, Portugal, Greece and others.
You can get that exposure via the Germany ETF, or in either of the broader Europe ETFs:
- iShares MSCI Germany Index Fund (NYSEArca: EWG)
- SPDR DJ Euro STOXX 50 (NYSEArca: FEZ): Germany is 28.1%
- iShares S&P Europe 350 (NYSEArca: IEV): Germany is 11.4%
Tisha Guerrero contributed to this article.
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.