One drawback of many single country exchange-traded funds is an over
concentration in just a few stocks. For example, only two stocks make
up 32 percent of the ishares MSCI Brazil Index (EWZ).
Four stocks make up 47 percent of the ishares MSCI Switzerland Index (EWL).
And just one stock makes up 24 percent of the ishares MSCI Taiwan Index
(EWT).
These large positions in a few stocks means that the funds will experience
much more volatility than more balanced portfolios consisting of many
stocks. Therefore, be sure to check the current holdings of a fund before
you buy it to ensure that the fund meets your diversification requirements.
| Single
Country Exchange-Traded Funds |
| ETF |
Symbol |
Top Holding |
| iShares MSCI Australia Index |
|
BHP Billiton (BHP) |
| iShares MSCI Austria
Index |
|
Erste Bank |
| iShares MSCI Belgium Index |
|
Fortis (FORSY.PK) |
| iShares MSCI Brazil Index |
|
Petroleo Brasileiro (PBR)
(PBR-A)
|
| iShares MSCI Canada Index |
|
Royal Bank of Canada (RY) |
| iShares MSCI France Index |
|
Total (TOT) |
| iShares FTSE/Xinhua China
25 Index |
|
China Mobile (CHL) |
| iShares MSCI Germany Index |
|
Siemens (SI) |
| iShares MSCI Hong Kong Index |
|
Hutchison Whampoa |
| iShares MSCI Italy Index |
|
Eni (E) |
| iShares MSCI Japan Index |
|
Toyota Motor (TM) |
| iShares MSCI Malaysia Index |
|
Malayan Banking |
| iShares MSCI Mexico Index
|
|
America Movil S.A. de C.V (AMX) |
| iShares MSCI Netherlands
Index |
|
ING Groep (ING) |
| iShares MSCI Singapore Index |
|
Singapore Telecommunications |
| iShares MSCI South Africa
Index |
|
Standard Bank Investment |
| iShares MSCI South Korea Index |
|
Samsung Electronics |
| iShares MSCI Spain Index |
|
Telefonica (TEM) |
| iShares MSCI Sweden Index |
|
Ericsson AB (ERICY) |
| iShares MSCI Switzerland Index
|
|
Novartis (NVS) |
| iShares MSCI Taiwan Index |
|
Taiwan Semiconductor (TSM) |
| iShares MSCI United Kingdom
Index |
|
BP (BP) |
| NOTE: Top Holdings as
of September 14, 2005 were taken from finance.yahoo.com. |
