It’s been a big year for ex-U.S. equities. Both broad international and market specific funds have delivered for ETF investors amid tariff concerns and a weakening U.S. dollar. That interest has seen all kinds of strategies benefit from new attention, but even still some continue to fly under the radar. One Europe foreign equities ETF in particular has seen robust performance but comparatively little notice.
2025: A Year for Foreign Equities ETF Investing
That single nation foreign equities ETF that many investors haven’t noticed? The iShares MSCI Austria ETF (EWO). The single nation foreign equities ETF has almost doubled the average performance of its ETF Database category, European equities. Specifically, EWO has returned 65.3% YTD according to ETF Database, compared to 33.4% for its ETF Database Category average. The fund has also outperformed that average over one-, three-, and five-year periods for its 50 basis point fee.
What, then, has EWO done to provide those returns? The fund, which launched all the way back in 1996 from iShares, tracks the MSCI Austria IMI 25-50 index. As a pure play option focused on Austria, the fund represents an intriguing alternative or even addition to standard, broad European equities funds.
Which stocks have helped the Austrian ETF stand out so much? The foreign equities ETF has benefitted from strong years for names like Erste Group Bank (EBKDY) and chemicals, fuel, feedstock, and energy firm OMV (OMV). The former has returned 88.6% YTD — benefitting EWO as its largest holding at almost a full 25% weight in the ETF. The bank has benefitted from growth in both central and eastern Europe. OMV, meanwhile, has benefitted from positive trends for its energy activities.
Looking ahead, EWO could be worth consideration as an intriguing diversifier from U.S. stocks. Its pure-play exposure makes it a potentially bigger swing than a standard European equities index ETF, while still offering that diversification. For those looking at the foreign equities ETF space, the Austrian ETF may appeal.
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