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Autoliv

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Alliance Data Systems

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iShares MSCI Germany ETF

EWG tracks a market cap-weighted index of large- and mid-cap German companies.

JPMorgan BetaBuilders Europe ETF

Xtrackers MSCI EAFE Hedged Equity ETF

Xtrackers MSCI Europe Hedged Equity ETF

iShares MSCI Switzerland ETF

iShares MSCI Spain ETF

iShares MSCI United Kingdom ETF

iShares MSCI Eurozone ETF

SPDR EURO STOXX 50 ETF

Franklin FTSE United Kingdom ETF

WisdomTree Europe Hedged Equity Fund

iShares Core MSCI Europe ETF

iShares Europe ETF

SPDR Portfolio Europe ETF

Vanguard FTSE Europe ETF

Investors in US stocks are clearly focusing on positive catalysts such as the potential for significant deregulation under the incoming Trump administration. We also saw stocks in Europe ignore fears and perform well last week despite some challenging developments.

U.S., European Stocks Rise Despite Looming Risks

EWG underperforms the S&P 500 due to a weak German economy and high exposure to cyclical sectors, resulting in higher volatility and downside risk. Germany's struggling economy, indicated by a composite PMI below 50, suggests continued economic challenges and poor growth prospects for EWG. EWG's portfolio composition, with low defensive sector exposure and high cyclical sector exposure, contributes to its higher volatility and risk.

EWG: Facing Growth Challenges And May Exhibit Higher Volatility

iShares MSCI Norway ETF

iShares MSCI Australia ETF

iShares MSCI Canada ETF

iShares MSCI Sweden ETF

iShares MSCI Hong Kong ETF

iShares MSCI Italy ETF

iShares MSCI Japan ETF

iShares MSCI Malaysia ETF

iShares MSCI France ETF

iShares MSCI Singapore ETF

iShares MSCI Taiwan ETF

iShares MSCI Mexico ETF

iShares MSCI South Korea ETF

iShares MSCI Brazil ETF

iShares MSCI South Africa ETF

Industrea Acquisition

iShares MSCI China ETF

SPDR S&P 500 ETF Trust

Shanghai CSI 300 has gone from a 52-week low to a 52-week high in only a couple of weeks. Other than China and Hong Kong, Australia is the only other international market starting the week at a 52-week high.

China Outperforms The Rest Of The World

Global X DAX Germany ETF

First Trust Germany AlphaDEX Fund

Franklin FTSE Germany ETF

The gradual cooling of the German labour market continues, providing further arguments for the European Central Bank doves to put an October rate cut back on the table. Recruitment plans in both industry and services have already fallen to the lowest level in a year.

Cooling Of German Labor Market Continues In September

Germany faces chronic underinvestment, weak productivity, aging demographics, geopolitical tensions, and poor performance in key export markets like China. Analysts predict minimal economic growth for Germany in 2024, with slight improvement expected in 2025-2026. Investors should remain cautious about German equities. The risk/reward outlook is skewed towards risk due to ongoing deindustrialization and other economic challenges Germany is facing these days.

EWG: Germany's Structural Headwinds Persist

Global X MSCI Argentina ETF

SPDR MSCI ACWI ex-US ETF

iShares MSCI Chile ETF

iShares MSCI Denmark ETF

iShares MSCI Finland ETF

iShares MSCI Indonesia ETF

iShares MSCI Ireland ETF

iShares MSCI Israel ETF

iShares MSCI New Zealand ETF

iShares MSCI Philippines ETF

iShares MSCI Poland ETF

iShares MSCI Peru ETF

iShares MSCI Belgium ETF

iShares MSCI Austria ETF

Global X MSCI Greece ETF

iShares MSCI India ETF

iShares MSCI Saudi Arabia ETF

iShares MSCI Thailand ETF

iShares MSCI Turkey ETF

Global X MSCI Vietnam ETF

US equities have outperformed the rest of the world for a long time now. While the US is up 58% on a total return basis during the current bull market, the rest of the world is up 13.5 percentage points less at +44.5%. Looking at the international dividend ETF over a longer time frame, over the last five years, it's up 20.6% in price and more than double that on a total return basis.

Highest And Lowest Country ETF Dividend Yields

iShares MSCI Germany ETF launched in 1996 and has $1B in assets, tracking 56 large and mid-sized German companies. The fund has performed well on a trailing 1- year basis, and its industrials' exposure is poised to benefit from a lower interest rate environment. I currently rate EWG as a buy based on the significance of the German economy and the potential for outperformance on the back of a European recovery.

EWG: Poised To Benefit From A Lower Interest Rate Environment

iShares Currency Hedged MSCI Germany ETF

German industry disappointed in May, indicating that the entire economy could have fallen back into negative territory in the second quarter. Industrial production dropped by 2.5% month-on-month in May, from 0.1% MoM in April.

German Industrial Disappointment Continues

Xtrackers MSCI Eurozone Hedged Equity ETF

WisdomTree Europe SmallCap Dividend Fund

WisdomTree Europe Quality Dividend Growth Fund

ProShares MSCI Europe Dividend Growers ETF

Direxion Daily FTSE Europe Bull 3X Shares

WisdomTree Europe Hedged SmallCap Equity Fund

First Trust STOXX European Select Dividend Index Fund

First Trust Europe AlphaDEX Fund

First Trust Eurozone AlphaDEX ETF

Franklin FTSE Europe ETF

Franklin FTSE Eurozone ETF

First Trust IPOX Europe Equity Opportunities ETF

Goldman Sachs ActiveBeta Europe Equity ETF

iShares Currency Hedged MSCI Eurozone ETF

iShares MSCI Europe Small-Cap ETF

ALPS O'Shares Europe Quality Dividend ETF Shares

Pacer Trendpilot European Index ETF

First Trust RiverFront Dynamic Europe ETF

The deteriorating eurozone growth trend was led by France, which saw output fall for a second consecutive month and at the fastest rate for five months. Fueling the manufacturing downturn was a steepening in the rate of loss of new orders.

Inflation Slows Further As Economic Growth Wanes: Our Key Takeaways From The Eurozone Flash PMI

EWG offers an easy way to gain exposure to the German stock market. US investors using dollar-denominated ETFs like EWG are experiencing significant underperformance due to currency effects. The investment case for buying EWG is not compelling due to political uncertainty, slow economic growth and the lack of a currency hedge.

EWG: The Unhedged Underperformer

Equities here in the US have gotten off to a weak start this month, with the S&P 500 down modestly over the past couple of sessions. The US-traded ETF that tracks Mexican stocks is down 8.3% month-to-date and 12.3% year-to-date.

EM Election Madness

Business activity in the euro area rose for a third successive month in May, the rate of growth accelerating to a one-year-high. Price pressures cooled, with services sector inflation - the recent stickiness of which has been a major concern for policymakers worried about sustained elevated inflation.

Stronger Growth And Lower Inflation: Our Key Takeaways From The Eurozone Flash PMI

Germany is likely in a recession, making it not worth investing in equities there yet. The iShares MSCI Germany ETF provides diversified exposure to the German market but has a high expense ratio.

EWG: Not The Right Time, And Better Options

Franklin FTSE France ETF

Business activity in the euro area came close to stabilising in March, as provisional PMI® survey data registered only a marginal decline in output of goods and services.

Eurozone Flash PMI Shows Economy Close To Stabilising In March, Price Pressures Ease

Xtrackers MSCI Germany Hedged Equity ETF

iShares MSCI Germany Small Cap ETF

Industrial production plunged again, ending the year 2023 at some 10% below pre-pandemic levels, but we are seeing the very first signs of light at the end of a long tunnel. The sharp drop in both exports and imports, as well as today's industrial production, not only illustrates the weakness of the German economy's backbone but also increases the risk of a downward revision of fourth quarter GDP growth.

German Industrial Production Plunges Again

German Inflation Drops To Its Lowest Level Since June 2021

Germany has structural economic issues, and EWG's exposures have quite a lot of explicit German sales. Germany's woes affect ECB policy, which will likely remain restrictive having an outsized impact on cyclicals. The German economy is still in a vice, and Europe isn't doing much better. We just don't see a recipe for success in the EWG bucket.

EWG: Passing On Germany

The German DAX Has Hit An All-Time High In December And This Is Why

Stocks in the group of wealthy democracies known as the G7 are up in 2023, with exchange-traded funds tracking those regions climbing last week amid a broader recent rally in equities globally.

G7 ETFs rise in global stock-market rally as S&P 500 approaches all-time high

Goldman Sachs Physical Gold ETF

GraniteShares Gold Shares

Invesco DB Precious Metals Fund

Wisdomtree Efficient Gold Plus Gold Miners Strategy Fund

VanEck Vectors Gold Miners ETF

MicroSectors Gold Miners 3X Inverse Leveraged ETN

VanEck Junior Gold Miners ETF

MicroSectors Gold Miners 3X Leveraged ETN

SPDR Gold Trust

Credit Suisse X-Links Gold Shares Covered Call ETN

SPDR Gold MiniShares Trust

Aberdeen Standard Precious Metals Basket Trust

U.S. Global GO GOLD and Precious Metal Miners ETF

Global X Gold Explorers ETF

iShares Gold Trust

iShares Gold Strategy ETF

iShares Gold Trust Micro

FT Cboe Vest Gold Target Income ETF

VanEck Merk Gold Trust

Sprott Physical Gold Trust

iShares MSCI Global Metals & Mining Producers ETF

iShares MSCI Global Gold Miners ETF

Sprott ESG Gold ETF

Sprott Junior Gold Miners ETF

Sprott Gold Miners ETF

Aberdeen Standard Gold ETF Trust

The German stock market has gone parabolic in an exceptionally strong move, after meandering over the summer months with sub-par economic releases. The surface reason for this division is that the vast majority of German earnings are not driven by the domestic economy but by their multinational operations.

There Could Be A Simple Explanation For The Dax Moonshot Move

Germany is facing numerous economic headwinds. Without adapting to a new global economic landscape and resolving structural issues, Germany may underperform chronically for years to come. While it's not the best time to invest in German equities, I'm not pessimistic about the German economy in the longer term.

EWG: Germany Is Caught In A Perfect Storm

WisdomTree Germany Hedged Equity Fund

The debate over whether Germany is emerging as the 'sick man of Europe' again has picked up steam once again over the summer. In our view, the answer is a resounding yes.

Germany's Economic Health Check Shows Further Signs Of Weakness

Germany's economy is set to contract this year, with risks ahead, such as emerging EU-China tensions and potential energy price shocks, depending on the weather. The Chinese market could close to German goods, and the EU itself may face severe economic and political crises if a decision to impose EV tariffs will trigger an economic war. The iShares MSCI Germany ETF is a risky investment option due to Germany's exposure and the potential for the EU economy to implode.

EWG: EU's Chinese EV Probe Should Signal A Need To Brace For Retaliatory Impact

German industrial production continues to decline, with a 0.8% drop in July and a 2.1% drop for the year. Energy-intensive sectors saw a decrease of 0.6% in July and are down over 11% for the year.

German Industrial Production Goes From Bad To Worse

iShares MSCI Germany ETF offers concentrated access to the German market with a focus on large-cap to mid-cap companies. Risks associated with investing in German markets include inflation, potential recessions, ECB policies, and challenges faced by German companies. An alternative ETF option with lower costs may be a better choice for investors considering the German market.

EWG: Challenges Loom Amid Economic Headwinds And Lack Of Potential

News for iShares MSCI Germany ETF ETF (EWG)