Van Eck has launched the Market Vectors Germany Small-Cap ETF (NYSE Arca: GERJ) designed to give investors pure-play exposure to Europe’s largest economy.
Germany is the fourth-largest economy in the world, and is one of Europe’s countries already leading the way out of the latest recession. The economy has grown at a rate of 3.6%, and unemployment numbers are down.
“With its history of innovation and niche market strengths, the country’s small-cap sector may continue to benefit from strong export-driven demand as well as domestic consumption,” said Jan van Eck, principal at Van Eck Global. “Our new ETF gives investors a focused vehicle for gaining exposure to this vibrant segment of the German economy.”
As Asian emerging markets begin to rev their growth engines, Germany is poised as a major export provider in areas such as the auto industry, electrical equipment and machine tools.[Banking sector Could Drag Germany ETF.]
GERJ is designed to reflect the local market activity, and companies in the index generate at least 50% of revenues from the German economy. The expense ratio is set at 0.55%. The small-cap approach helps tap into Germany’s smaller companies which make up about 70% of the German workforce.
The top-represented sectors are industrials, information technology, consumer discretionary and financials. [Germany ETF Caught In Mixed Senitment.] GERJ joins iShares MSCI Germany (NYSEArca: EWG), which is a large-cap play on the German economy.
Tisha Guerrero contributed to this article.
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