Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22
How to Profit from 2022’s Biggest Trend Reversal - 11th Jan 22
Stock Market Sentiment Speaks: Are We Ready To Drop To 4400SPX? - 11th Jan 22
What's the Role of an Affiliate Marketer? - 11th Jan 22
Essential Things To Know Before You Set Up A Limited Liability Company - 11th Jan 22
Fiscal and Monetary Cliffs Have Arrived - 10th Jan 22
The Meteoric Rise of Investing in Trading Cards - 10th Jan 22
IBM The REAL Quantum Metaverse STOCK! - 9th Jan 22
WARNING Failing NVME2 M2 SSD Drives Can Prevent Systems From Booting - Corsair MP600 - 9th Jan 22
The Fed’s inflated cake and a ‘quant’ of history - 9th Jan 22
NVME M2 SSD FAILURE WARNING Signs - Corsair MP600 1tb Drive - 9th Jan 22
Meadowhall Sheffield Christmas Lights 2021 Shopping - Before the Switch on - 9th Jan 22
How Does Insurance Work In Europe? Find Out Here - 9th Jan 22
Effect of Deflation On The Gold Price - 7th Jan 22
Stock Market 2022 Requires Different Strategies For Traders/Investors - 7th Jan 22
Old Man Winter Will Stimulate Natural Gas and Heating Oil Demand - 7th Jan 22
Is The Lazy Stock Market Bull Strategy Worth Considering? - 7th Jan 22
What Elliott Waves Show for Asia Pacific Stock and Financial Markets 2022 - 6th Jan 2022
Why You Should Register Your Company - 6th Jan 2022
4 Ways to Invest in Silver for 2022 - 6th Jan 2022
UNITY (U) - Metaverse Stock Analysis Investing for 2022 and Beyond - 5th Jan 2022
Stock Market Staving Off Risk-Off - 5th Jan 2022
Gold and Silver Still Hungover After New Year’s Eve - 5th Jan 2022
S&P 500 In an Uncharted Territory, But Is Sky the Limit? - 5th Jan 2022

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Investors Get Down Under With Australia ETFs

Companies / Austrailia Oct 28, 2010 - 08:47 AM GMT

By: Ron_Rowland


Best Financial Markets Analysis ArticleSee if you can guess the country …

• Straddles two different oceans

• Part of the British Commonwealth

• Huge wilderness area

• English-speaking

• Democracy

• Capitalist

• Technologically and industrially advanced

• Huge natural resource reserves

Did you think about Canada? If so, you’d be correct. But another country also fits the description: Australia. However, here in the U.S. we aren’t as familiar with Australia. Few of us have been there, and it’s a long way from home.

Investors need to check out what is happening down under because Australia has some amazing investment opportunities. You can take advantage of them with exchange traded funds (ETFs), too. Let’s take a closer look.

Australia: Better than Canada?

I love Canada and all things Canadian. I’ve made some good money over the years by investing with our neighbor to the north. But right now, being neighbors with the U.S. isn’t so attractive.

The border won't protect Canada from our recession.
The border won’t protect Canada from our recession.

You see, the border can’t protect Canada from all our economic problems. Parts of the Canadian economy are shrugging off the U.S. recession. Inevitably, though, weakness here means weakness there.

The Aussies also have deep ties to the U.S. and the industrialized West, but there are important differences. The same oceans that make it seem so remote also insulate Australia from the trouble we’re going through — and put it that much closer to fast-growing China and Southeast Asia.

Think about it this way: Australia is to China as Canada is to the U.S. So if you believe (as I do) that China is going to overtake the U.S. as the world’s largest economy in the coming decades, Australia is likely to do far better than Canada.

Vast Area, Vast Potential

Australia certainly has plenty of room to grow — and I mean that literally. People forget how big it really is!

Here’s a good comparison: The continental U.S. has a land area of about 3.1 million square miles. Australia’s land area? Just a bit smaller at 2.9 million square miles.

Now compare population: The U.S. has about 300 million people. Australia, with almost as much land mass, has a population of only 22 million — and most of them are concentrated in a few big cities near the coast. The interior “Outback” is vast, largely unpopulated, and filled with all kinds of mineral riches.

Australia's outback is vast, unsettled and rich.
Australia’s outback is vast, unsettled and rich.

The Asians certainly see potential in Australia. For instance just this week, Singapore Exchange Ltd. made an $8.3 billion offer for ASX, Australia’s primary stock exchange. The potential combination could create a regional trading powerhouse.

So how can you get involved in Australia? You can certainly look at individual stocks, but I prefer the convenience and diversification of ETFs. American investors can consider two ETFs devoted to Australian stocks:

  • iShares MSCI Australia (EWA) holds 74 of the largest, most liquid stocks domiciled in Australia. Mining giant BHP Billiton (BHP) is the largest holding, but the biggest sector in this ETF is actually financial services. When expressed in U.S. dollars, EWA has posted a total return of 140.6 percent since the March 2009 market low.
  • IQ Australia Small Cap (KROO) is a newer choice and has a different focus. KROO tracks an index of small-cap Australian stocks, with a heavy emphasis on materials, consumer discretionary and industrial issues.

There is little or no overlap between EWA and KROO, so you could benefit from holding both. Just be aware that they’ll still be highly correlated to each other.

You might also want to check out two other ETFs that are closely related to Australian stocks:

  • CurrencyShares Australian Dollar (FXA) follows the exchange rate between the U.S. dollar and the Australian dollar. The greenback has been losing ground to the Aussie buck for quite some time, a trend that has picked up momentum in the last few weeks. FXA is a good way for Americans to hedge their currency exposure.
  • iShares MSCI New Zealand (ENZL) is a new ETF, just launched in September of this year. New Zealand, as you know, is an island nation near Australia with close economic ties. Whenever Australia prospers, you can expect ENZL to share in some of the good fortune.

As always, be cautious when trading international ETFs. Due to time zone differences, they are subject to large opening gaps — both up and down — when morning reaches the U.S.

Best wishes,


This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in