In many ways, Australia’s standing as a solid economy was cemented in the wake of the financial crisis. That aside, there are so many other reasons to consider Australia’s exchange traded funds (ETFs).
- Trade deals could be around the corner. Ricky Roxas for International Business Times reports that the federal trade minister shows interest in creating free trade deals between Australia and Japan, Korea and China. [Aussie, Canadian Dollar ETFs Near Parity.]
- It’s just a nice place. Carl Delfeld for Investment U reports that other factors in favor of this country for investment include the fact that it is commodity rich, plenty of natural resources and nice weather, and it is one of the happiest places to live, as ranked by a United Nations survey. [Play China’s Growth With Australian ETFs.]
- Demand from China is one of the main drivers that is fueling Australia’s economy and rallying the country’s huge energy infrastructure. Australia can also be viewed as a proxy to Chinese growth and the Asian development taking place.
There are two primary tacks to take when investing in Australia. Primarily large- and mid-cap exposure can be had in iShares MSCI Australia (NYSEArca: EWA), or you can get more exposure to the domestic economy’s small-caps with IQ Australia Small Cap (NYSEArca: KROO).
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.