ENZL - ENZL: New Zealand Equities Look Overvalued As New Zealand Dollar Trades To Fair Value

• ENZL offers primarily U.S. investors with the opportunity to achieve direct exposure to New Zealand equities.
• Generally speaking, it is a good idea to diversify internationally as a U.S. investor, to reduce risk, especially in light of a potential weakening of USD (further) into 2021.
• Nevertheless, with New Zealand equity valuations being relatively high, and with government bond yields in the U.S. and New Zealand being similar, the relative value offered here is weak.
• It is cheaper and likely more effective for U.S. investors to invest domestically than in New Zealand equities. Meanwhile, more appealing geographies exist internationally for equity diversification.

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