South Africa Is Primed For Investors With These ETF’s (EZA, SZR)

south-africa1“South Africa, one of the big five emerging markets, is primed for investors.  The political climate has never been more stable than it is now.  The government is spending $98 billion on infrastructure.  The financial sector is surprisingly stable.  As much as the South African Reserve Bank lowers interest rates, consumer spending remains unchanging.  Rather than being a consumer-driven economy South Africa thrives on a product-based economy.  Materials production is at its highest.  South Africa’s ports help transport the majority of the world’s oil.  Now is the perfect time to invest in this rising economy.  Especially taking into account the fact that South Africa was one of the last areas to feel the effect of the global economic downturn, which means that the economic recovery in South Africa is just beginning,” Mary Daniel Reports From Examiner.

Mary Daniel goes into detail with three picks, two of them being ETF’s.  We have listed the 2 ETF’s with details on each below:

The investment (EZA) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the South African market, as measured by the MSCI South Africa index. The fund generally invests at least 95% of assets in the securities of its Underlying index and in depositary receipts representing securities in its Underlying index. It invests at least 90% of assets in the securities of the Underlying index or in DRs representing securities in its Underlying index. The index consists of stocks traded primarily on the Johannesburg Stock Exchange. It is nondiversified.

iShares MSCI South Africa Index (EZA) TOP 10 HOLDINGS ( 61.91% OF TOTAL ASSETS)  
 
TOP 10 HOLDINGS ( 61.91% OF TOTAL ASSETS)  
 
Company Symbol % Assets
Absa Group Limited N/A 2.43
AngloGold Ashanti Limited N/A 6.12
Firstrand Limited N/A 2.86
GOLD FIELDS LTD ADS (GFI) 4.39
Impala Platinum Holdings N/A 6.58
Mtn Group Limited N/A 12.74
Naspers Cl N N/A 5.24
Sanlam Ltd N/A 2.59
Sasol, Ltd. N/A 11.66
Standard Bank Group Ltd N/A 7.3

Chart for iShares MSCI South Africa Index (EZA)

 

The investment (SZR) seeks to earn current income reflective of money market rates in South Africa available to foreign investors and to provide exposure to changes in the value of the South African Rand relative to the U.S. dollar. The fund normally invests in short term securities designed to provide exposure to South African currency and money market rates. It generally will maintain a weighted average portfolio maturity of 90 days or less and will not purchase any security with a remaining maturity of more than 397 calendar days. It is nondiversified.

WisdomTree Dreyfus South African Rand (SZR) TOP 10 HOLDINGS ( 27.66% OF TOTAL ASSETS)  
 
Company Symbol % Assets
FHLMC FRN N/A 4.16
FNMA N/A 5.8
FNMA N/A 4.15
Goldman Sachs Flt Fdic N/A 4.17
MORGAN STANLEY FDIC GTD TLGP N/A 5.22
Union Bk Flt Fdic 03/11 N/A 4.16

Chart for WisdomTree Dreyfus South African Rand (SZR)

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