2024-06-19 23:14:16 ET
Summary
- 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.
European stock markets have performed well in recent years despite the EU economy fluctuating around zero growth. In fact, one of the best performing indices was the German DAX which gained 20.3% in 2023 despite a recession. YTD DAX has returned 10.4%....
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For further details see:
EWG: The Unhedged Underperformer