ETF Research and Analysis

by Patricia Oey
Suitability
IShares MSCI Australia 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 

Don't Pay Up to Play REITs 
Watch more 

Premium Membership

View all of our analyst reports with a free trial to Morningstar.com Premium.