Conversely, DRW’s underlying index trades at just 10 times earnings and at a book value below one. Other large country weights in the ETF include over 10% each to Singapore and France and almost 9% to Canada.
However, how Australia impacts DRW affects DRW over the medium-term is an issue to watch. The world’s twelfth-largest economy is expect to post the third-highest economic growth rate among developed markets this year and the Reserve Bank of Australia is has warned about an overheating property market there.
It is not a foregone conclusion, but it is possible that the RBA reverses course and sends rates higher. Even if that happens, DRW has enough exposure to low rate countries to endure. [Australia ETFs Can Survive a Rate Hike]
WisdomTree Global ex-US Real Estate Fund