ETF Research and Analysis

by Patricia Oey
IShares MSCI Australia Index EWA provides broad exposure to Australian equities, and as a single-country fund, is suitable for use as a satellite holding. A commodity boom during the past decade, driven by heavy infrastructure   Read more 

Bull Case

This fund has a relatively high dividend yield.
The largest holdings in this fund are Australia's big four banks, which are well-run firms that operate in an oligopolistic environment.
Historically, this fund has been less correlated to the S&P 500 relative to an index fund of European stocks. As such, this fund may provide better diversification benefits. Read more 

Bear Case

Although Australia is a developed market, this fund's volatility is more in line with that of an emerging-markets fund because of the Australian dollar's volatility.
Slowing demand for commodities from China is a headwind for the Australian economy.
The private sector is deleveraging and unemployment is rising. Read more 

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