The iShares MSCI Germany Index (NYSEArca: EWG), an exchange traded fund tracking the Eurozone’s largest economy, has outperformed in 2012. The fund is up 18% year-to-date and has mirrored the country’s strength.

“Germany has been a stellar performer so far in 2012, up over 24%, roughly double the return for US equities. Stocks in the Netherlands have also posted a significant rally, up 14% so far this year, in line with a broader global benchmark,” Russ Koesterich wrote for the iShares blog. [Single-Country ETFs That Offer Yield]

As Europe continues to migrate towards more integration, riskier European investments will be in focus. Major structural reforms still need to be put in place and much is expected of European politicians. Banking sector reforms, labor market reform and fiscal integration to pool debt will all support the economy of Germany.

Some of the holdings in EWG that are domiciled in Germany have had stand out performances. Lanxess, a chemical company listed on the Frankfort stock exchange has gained 67%  this year. Listings on U.S. exchanges have also fared well such as Bayer, Volkswagon and SAP. [European ETFS Recover on Central Bank Hopes]