Industry Firsts: Denmark ETF (EDEN), Finland ETF (EFNL) Debut

by on January 27, 2012 | ETFs Mentioned:

After recently becoming the first issuer to list products on the BATS Exchange, iShares followed up with six more international equity products on Thursday. Three of the ETFs that began trading are the first of their kind, offering exposure to asset classes not previously accessible in the ETF wrapper: 

  • MSCI Denmark Capped Investable Market Index Fund (EDEN): This ETF is linked to the MSCI Denmark 25/50 Index, which caps the weighting to any one security at 25%. The index has about 38 holdings in total, with the largest allocations to Novo Nordisk (24%). EDEN has a unique sector breakdown; about 35% of the portfolio is in health care stocks, with another 25% allocated to industrials companies. Energy stocks, which usually make up a big portion of international equity ETFs, are not represented [see EDEN fact sheet]. 
  • MSCI Finland Capped Investable Market Index Fund (EFNL): This ETF is the first to offer exposure to Finnish stocks; EFNL has about 42 total holdings, led by Nokia (18%). From a sector perspective, industrials (27%), technology (19%), materials (15%), and financials (13%) make up most of the portfolio [see EFNL fact sheet]. 
  • MSCI United Kingdom Small Cap Index Fund (EWUS): This ETF offers exposure to about 275 small cap stocks listed in the U.K., and as such has a considerably broader base of holdings (no one name accounts for more than 2% of holdings). While the large cap UK ETF offered by iShares (EWU) is dominated by banks and oil companies, EWUS has a tilt towards industrials (24%) and consumer discretionaries (20%). The components of the underlying index have an average market cap of slightly more than $1 billion [see EWUS fact sheet]. 
In addition, iShares also rolled out three new small cap international ETFs. Each of these products offers exposure to an asset class already covered by an existing ETF: 
  • MSCI Australia Small Cap Index Fund (EWAS): This ETF targets small cap Australian stocks, focusing on firms in the country’s robust materials industry. IndexIQ already offers an small cap Australia ETF, KROO. 
  • MSCI Canada Small Cap Index Fund (EWCS): This ETF offers exposure to small cap Canadian companies, complementing the large cap-focused EWC. iShares is also going head-to-head with an established product from IndexIQ in this space; CNDA offers exposure to small cap Canadian companies. 
  • MSCI Germany Small Cap Index Fund (EWGS): This ETF targets smaller German companies, rounding out the exposure offered by the iShares MSCI Germany Index Fund (EWG). The index underlying EWGS consists of about 116 individual holdings, with the largest allocations to industrials (34%) and technology (15%). 
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Disclosure: No positions at time of writing.