| |
|
|
| |
 |
Invalid request! |
Belgium ETFs
|
|
 |
| |
About Belgium ETFs |
|
Belgium ETFs: Overview and forecast
The Belgian ETF market is currently reflected by one specialist Belgian stock index ETF, iShares MSCI Belgium Index Fund, (AMEX:EWK). This fund has done a lot in its several years of existence, and the notable thing about it is that it retains quite a solid trading base. The Belgian stock market isn't that well known globally, but it contains the European versions of some international heavyweights, and it's actually a well capitalized market.
http://www.etftips.com/EWK#holdings
The result of that combination of circumstances is that EWK has had a very interesting history of price moves. EWK's overall trading is worth a look, because it's quite atypical. At the end of the second quarter of 2009 it's in the lower end of its historical price ranges, despite making a 50% upturn from its lows of early March 2009. Trading volumes are relatively stable, with a few peaks of much higher volumes representing a variety of different buying positions.
Some peaks were at low points, and others occurred during higher price periods, which indicates different sets of trading rationales. The Rate Of Change is looking flat at the end of the June quarter of 2009, but that's after this big upward percentile move. These major volumes were purchased at the start of each month in the second quarter, and through most of 2009, which may indicate a systematic buying pattern.
Short term (6 months)
By historical standards, EWK should have considerable upside in its arsenal in the short term, but Belgium is the epitome of the European market, and Europe's overall performance has been pretty dire. The more likely scenario for the short term is some improvement, which may produce decent margins over the rest of 2009.
The weak point is that this is a specialist investment market, and the levels of trader interest aren't showing much in the way of sustained heavy trade. That will impact in the form of slower price moves. EWK is a traditionally structured ETF, and its selling point as a spread of investments is therefore limited to the Belgian market.
Medium term (2 years)
Given the relatively sudden and strong reversal of its long decline in prices in the second quarter of 2009, EWK has to be given some credence as being able to develop its position in the medium term. Exactly how far that will go, however, is debatable. Despite a healthy portfolio, the upside of the fund is restricted to its market index position.
EWK is also somewhat disadvantaged by being the only show in town in the local ETF market. These one ETF markets are almost advertisements for the need for more diversity in the range of ETFs to attract more traders and more investor interest. The medium term is likely to reflect what traders can do, rather than what the investment model is capable of doing.
Long term (5 years)
The long term for EWK and the Belgian market generally is likely to be a lot stronger, an extension of the medium term, with the same upsides and reservations. Belgium, one of Europe's historical trading centers, is always the beneficiary of improvements in European trade, and its stock market is likely to repeat this centuries old performance.
Qualifiers to projections
Belgium, ironically, is one of the most economically advanced countries in the EU, but it hasn't been particularly quick about taking up the ETF idea, which is well suited to the vast range of investment and capital markets which have their homes in Brussels. EWK itself is a modified form of a listed unit fund, not a modern ETF model.
Belgium is economically a multi national country, geared to international and European trade like few others. It's extremely unlikely the glaringly obvious opportunities for capital investment available to actively managed ETFs in Belgium will remain unexploited for long. One of the more likely scenarios is that ishares may do what it's done in other countries, and create a stable of ETFs to take advantage of this situation.
|
|
|
| |
|
|
|
|
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.
|
| |
| Copyright EtfTips.com ©2009 |
|
|
| |
|
|
