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This 7% Yielding ETF Was Ravaged By Ukraine War. Is Now The Time To Buy?

Published 24/09/2022, 14:13
© Reuters.  This 7% Yielding ETF Was Ravaged By Ukraine War. Is Now The Time To Buy?
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The iShares MSCI Germany Index Fund is down roughly 39% year-to-date, after hitting a high of $33.51 back in January 2022. The steepest decline in the exchange traded fund took place shortly after Russia decided to mobilize its troops into Ukraine as a “specialty military operation,” which took place in February 2022.

As a result, Germany’s economy was hit hard by the reduction and eventual closure of the Nord Stream pipeline, and macroeconomic headwinds sent a shock through German equities.

Now that the ETF has fallen by 39%, it may be an opportune time to open a position in the fund, to mitigate systematic dangers in the American stock market.

Go To: Investors Pull Record Amount Of Funds From Commodity ETPs Asset In July As They Look Past Russia-Ukraine War

iShares MSCI Germany Index Fund (ARCA: EWG) is offering a dividend yield of 7.58% or $1.58 per share annually, through semi-annual payments, with a notable track record of increasing its dividends once in the past year. iShares MSCI Germany Index Fund seeks to track the investment results of an index composed of large and mid-sized German equities.

Since its inception in 1996, the fund has reported a net asset value of 4.59% when looking at past performance.

The funds top three sectors include industrials, financials and consumer discretionary, with its top-held position in database technology company SAP (NYSE: SAP).

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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