S&P Capital IQ also has a marketweight on the iShares MSCI Germany ETF (NYSEArca: EWG), a solid if not spectacular performer this year. German stocks are pricey compared to peers in France or the PIIGS nations, but that is the result of the “safety premium” investors are will to pay for Germany’s perceived steadiness.
Adding to the case for German stocks is the country’s trade surplus, which reached a record $270 billion last year. GMI recommends an overweight position on German industrials, a sector that accounts for nearly 14% of EWG’s weight.
In addition to EWG, there are other sound ETF options for accessing Germany including the db X-trackers MSCI Germany Hedged Equity Fund (NYSEArca: DBGR) and the iShares MSCI Germany Small-Cap ETF (NYSEArca: EWGS). DBGR offers the advantage of possible upside in German stocks with protection against a falling euro. EWGS, which like EWG is not currency hedged, is one of this year’s best Germany ETFs with a gain of 6.5%. [Multiple ETF Avenues to Germany]
iShares MSCI Germany ETF
ETF Trends editorial team contributed to this post.