Germany has the largest and most powerful economy in Europe, it is also the fourth world economy. Moreover, Germany is the third largest exporter. The German economy is characterized by highly skilled labor force, a large capital stock and a high level of innovation. One of the easiest ways to invest in Germany is through Exchange Traded Funds. With the German ETFs investors gain an exposure to the German markets (hedging), or diversify an overall portfolio. With only one transaction investors gain instant access to the German companies or track an underlying index. Investors should pay attention to the German EU membership. EU countries are connected to each other via sovereign debt issues. Financial problems in one country may significantly affect others. Generally, Germany benefits from its EU membership, but due to the European sovereign debt crisis Germany is not as certain investment as it was in the past. Besides the problems in Eurozone, Germany has an aging population that may have negative impact on its social welfare programs. As with every investment, the risks and rewards of the investing in German ETFs may be significant. Before investing in German ETFs investors should conduct a detailed research and analysis of the German ETFs in which they want to invest.
Equity, Germany ETFs on average are in the medium-term up 7% in 1 year. In the long-term down -22% below S&P in 2 years.
Small-cap, Germany ETF is in the long-term down -23% below S&P in 2 years and up 121% in 10 years.
|Symbol||Company Name||Price||Change||Total net assets||Total expense ratio|
|BUNL||Deutsche Bank AG, London Branch||29.4|
|BUNT||PowerShares DB 3X German Bund Futures ETN||61.33|
|DAX||Recon Capital DAX Germany ETF||24.92||0.17%|
|DBGR||DBX ETF Trust||25.19||0.01%||0.45%|
|DXGE||WisdomTree Germany Hedged Equity Fund||28.44||0.09%||9.44 M||0.48%|
|EWG||iShares MSCI Germany Index Fund||26.31||0.15%||5.96 B||0.51%|
|EWGS||Ishares MSCI Germany Small Cap ETF||40.63||40.11 M||0.59%|
|FGM||First Trust Exchange Traded AlphaDEX Fund II||36.19||0.46%||0.8%|
|HEWG||iShares Currency Hedged MSCI Germany ETF||25.86||0.04%|
|QDEU||SPDR MSCI Germany Quality Mix ETF||51.31||-0.02%|