- The Austrian equity market is relatively small, and so EWO only has 26 holdings.
- These holdings are also exposed mainly to Financials, and other "traditional" sectors outside of technology.
- Perhaps as a result, valuations are low. But I would argue too low, with Austrian equities trading at low price/earnings and price/book ratios.
- Although it might require further international capital flows into Austria, there is potential here for more than 50% upside based on valuation.
- In a more mundane scenario, I still think Austrian equities could out-perform. With local risk-free rates negative, Austrian stocks look exceedingly cheap.
For further details see:
EWO: Austrian Equities Are Cheap