The fund is heavy on industrials as this segment accounts for more than one-fourth of the portfolio while financials, information technology and consumer discretionary take the remainder. Among countries, United Kingdom (32.6%), Sweden (14.6%), Italy (9.5%) and Germany (8.7%) dominate the holdings list.
Heavy focus on some of the better-positioned nations like the U.K., Sweden and Germany is positive of the fund. Plus, a tilt toward dividends was the icing on the cake in a yield-starved continent.
The fund was down 1.62% in the last one month (the lowest loss in the space), but was up 0.8% in the last three months, indicating commendable performance in the pack of European ETF losers.
MSCI Germany Small Cap Index Fund (EWGS)
Germany has been a better-placed economy in the Euro bloc. Zew Economic Sentiment Index in Germany expanded for the second successive month to34.90 in December of 2014 from 11.50 recorded last month and also surpassed analyst expectations. The number was even higher than Euro Area average of 31.80 and 18.40 touched in the U.K.
This gives EWGS — an ETF with $26.4 million under management — an edge over its other domestic cousins as well as broader Euro zone counterparts. The fund was up 4.44% in the last three month period – the second best show in the European pack, but lost about 2.4% in the last one month.
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