Optimism Among Exporters Could Fuel These 5 Germany ETFs

The European’s economic powerhouse, Germany, could continue its rebound from the Covid-19 pandemic as data published by the country’s IFO institute showed that expectations for exports improved during the month of July.

Key details of the data included the following per a FX Street report:

  • “Export expectations in Europe’s largest economy rose to 6.9 points in July from -2.2 the previous month.”
  • “Cautious optimism is spreading among German exporters.”
  • “The automobile sector is one of the biggest winners. After some very tough months, the export business should pick up again.”

^MSDE Chart

^MSDE data by YCharts

In the meantime, here are five Germany-focused ETFs investors can look at for potential opportunities moving forward:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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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