Austria ETFs

Home > By Region > Global ETFs > European ETFs > Austria ETFs

Average returns in this Category	3 months return	6 months return	12 months return	YTD return

Austria ETFs	28.23%	97.57%	-18.20%	62.21%

Ticker SPY	Name	3 months return	6 months return	12 months return	YTD return

EWO	iShares MSCI Austria Index Fund	28.23%	97.57%	-18.2%	62.21%


	About Austria ETFs
European ETFs Austria ETFs Overview and forecast Austria has only one ETF of its own, but like all European ETFs, it has to be considered in the European context. This particular ETF is also showing some real strength, rising from a low of around $10 in March 2009 to near $18 in June. It's a stock market index ETF, and its trading volumes are sometimes very interesting. This ETF, iShares MSCI Austria Index Fund (AMEX:EWO) is also an interestingly weighted set of holdings. Ranges vary between 3% and 14%, which is a slightly unusual weighting ratio. This weighting appears returns based, rather than a more usual stringent policy of formula weightings. The Austrian stock index has been similarly affected by the crash to other markets, and this ETF has not only risen, it's recovered respectably from a steep dive in the 2007- 2008 cataclysm, when it was trading in the $40 range for quite a while. That indicates some real interest from traders. This fund was trading very much like the US models, in a sedate, not to say comatose, higher price range on relatively thin volumes, prior to the crash. Big volumes were very rare. Apart from some obvious opportunistic buying in a low range in January 2008, not much happened. Then the volumes picked up, dramatically, in this case, in the lower price ranges after the crash. EWO, like many other traditional ETFs, has apparently reinvented itself as a trader, and nobody would be minding the new dynamic. Short term (6 months) This ETF has shown a lot of resilience, despite the soggy European markets and a rather drab economic outlook. It will be noted from the March 2009 quarter that the intensity levels have picked up along with volumes, and that's good news for traders. The prices read like a triple indicator on a sound system. The problem with the short term forecast is bandwidth. EWO has hit its post crash top range in the second quarter of 2009 with an almost solid increase in price over that term. That doesn't necessarily mean there's no upside left, because the capital volumes are pretty good. It does, however, mean that the dynamics are likely to change a bit, too, and a downside has to be considered. A limited upside is likely in the short term. Medium term (2 years) One of the possible reasons for the strong interest in the Austrian ETF is that Europe is now one big marketplace for investment. It's possible to underrate the ?European effect?, and the rest of Europe hasn't been too spectacular in its own right. So it's not really a surprise that a smaller, but healthier, option is getting bought up. The medium term outlook has to factor in the likelihood of a European ETF market, which would work well for the Austrian ETF, and probably generate more products. Austria is one of the original homes of the European markets, (the Rothschilds started business there), and historically there's something to be said for being literally in the middle of the new European Union. There's a definite positive outlook for Austrian ETFs in the medium term. Long term (5 years) It is absolutely certain that Europe will pick up the ETF market pretty quickly. The long term time frame is quite long enough for them to establish themselves as an investment concept in such a big, diverse, market. The Austrian ETF market barely exists, despite the existence of a healthy advanced market, so that situation has to change. What's interesting is that the European ETF market will probably develop on the more modern ETF models, and if Austria's pioneering ETF is anything to go by, they could do very well. EWO won't be the only ETF on the market for long. The long term view is definitely looking good. Qualifiers to projections This is a very underdeveloped market for ETFs, but the real investment environment in Europe is also extremely diverse. That's not necessarily good or bad, but it requires some thought. Embryonic ETF markets like Austria are based on the known factors of the Austrian equity market, but the wider range of options like commodities, etc, have yet to be explored. One traditional ETF and some possibilities doesn't define a market, even in a comparatively stable economy like Austria. Even in the US, experienced fund managers have had some problems with models and methods, so the development of the Austrian ETFs will require some watching to see what emerges.

Last Updated on: 2010-01-14 02:03:40

Quotes are updated automatically. Quotes are delayed. Etftips.com has not reviewed, and in no way endorses the validity the data. Etftips.com shall not be liable for any actions taken in thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Etftips.com nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any action taken in reliance on information contained herein. By accessing the Etftips.com site, you agree not to redistribute the information found herein. ETF Values can go up as well as down.