Ever consider investing down-under with an Australia ETF?
iShares MSCI Australia Index Fund (NYSEArca: EWA) makes it possible. The long-established $1.4 billion fund tracks an index that seeks to correspond to the price and yield of publicly traded securities in Australia.
The market-cap weighting has resulted in 15% of the holdings invested in a single company – BHP Billiton (NYSE: BHP). In total, over 28% of the fund is held in materials companies as of 02.28.08.
The fund is also heavily concentrated in financials with almost 40% held in banks such as Commonwealth Bank of Australia (ASX: CBA), National Australia Bank (ASX: NAB) and Westpac Banking Corp (NYSE: WBK). The upside is that EWA currently throws off a healthy ttm yield of 4.68% (source: Yahoo Finance).
The one-year performance of EWA relative to the market clearly reflects the concentration in commodities (the run up) and financials (the run down).
See the iShares website for more information.