The iShares MSCI New Zealand Market Investable Index Fund
In this note I want to review a relatively new ETF the iShares MSCI New Zealand Market Investable Index Fund (ENZL). This is a small ETF with just over $80 million dollars in investable assets. The largest holdings are Fletcher Building Ltd (21.86%) which is a conglomerate that has five divisions namely building products, distribution, infrastructure, laminates and panels and steel that does business not only domestically but across throughout Asia, the Middle East and Europe. Telecom Corp of New Zealand (16.29%) which is New Zealands largest telecommunications company.
In terms of sector distribution the largest are Materials (24.77%), Telecommunications (16.29%), Consumer Discretionary (12.91%), Financials (12.30%), Utilities (11.52%), and Industrials (11.03%). Its nearest neighbor the iShares MSCI Australia Index Fund (EWA) has the following sector breakdown Financials (42.20%), Materials (29.09%), Consumer Staples (9.21%), Energy (6.59%), Industrials (4.22%). Note that the financial sector is a much smaller component of (ENZL) while Materials and Industrials are well represented in (ENZL). Since March 1996 (EWA) has increased 329%. So far since its inception six months ago (ENZL) has increased 16.4%. It remains to be seen whether (ENZL) will be popular with institutions who may want to use this as an indirect way to get exposure to the Pacific region but does not have a large exposure to the financial sector.
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