As the world begins to reopen its economy, developing nations like German are poised for a rebound, but the recovery could take some time. Until then, exchange-traded fund (ETF) investors have a plethora of options when it comes to betting on the European Union’s leading economy.
“The German economy probably reached its lowest point in April but a full rebound will take time even as the easing of coronavirus restrictions should quickly make up for some production losses, the IfW institute said on Thursday,” a Reuters report noted.
“The full recovery from the crisis will take some time,” the IfW said.
In the meantime, here are five Germany-focused ETFs investors can look at for opportunities:
- iShares MSCI Germany ETF (EWG): seeks to track the investment results of the MSCI Germany Index. The fund will at all times invest at least 80% of its assets in the securities of its underlying index and in depositary receipts representing securities in its underlying index. The underlying index primarily consists of stocks traded on the Frankfurt Stock Exchange. It will include large- and mid-capitalization companies and may change over time.
- iShares Currency Hedged MSCI Germany ETF (HEWG): seeks to track the investment results of the MSCI Germany 100% Hedged to USD Index. The index primarily consists of stocks traded on the Frankfurt Stock Exchange with the currency risk inherent in the securities included in the underlying index hedged to the U.S. dollar on a monthly basis.
- First Trust Germany AlphaDEX Fund (FGM): seeks investment results that correspond generally to the price and yield (before the fund’s fees and expenses) of an equity index called the NASDAQ AlphaDEX® Germany Index. The index is designed to select stocks from the NASDAQ Germany Index (the “base index”) that may generate positive alpha, or risk-adjusted returns, relative to traditional indices through the use of the AlphaDEX® selection methodology.
- WisdomTree Germany Hedged Equity Fund (DXGE): seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Germany Hedged Equity Index. The index is a dividend weighted index designed to provide exposure to Germany equity markets while at the same time neutralizing exposure to fluctuations of the value of the euro relative to the U.S. dollar.
- iShares MSCI Germany Small-Cap ETF (EWGS): seeks to track the investment results of the MSCI Germany Small Cap Index. The index is designed to measure the performance of equity securities of German small capitalization companies.
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