iShares MSCI New Zealand ETF (NASDAQ: ENZL)

iShares MSCI New Zealand ETF (NASDAQ:ENZL), Trade Ideas

iShares MSCI New Zealand ETF

iShares MSCI New Zealand Capped ETF

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iShares MSCI New Zealand Investable Market Index Fund

ENZL

A Surprise Among Asia-Pacific ETFs

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New Zealand Tops World Bank&#39;s &#39;Ease Of Doing Business&#39; Index

<a href="https://www.tvnz.co.nz/one-news/new-zealand/prime-minister-jacinda-ardern-hold-impromptu-press-conference-9-15pm" title="https://www.tvnz.co.nz/one-news/new-zealand/prime-minister-jacinda-ardern-hold-impromptu-press-conference-9-15pm">https://www.tvnz.co.nz/one-news/new-zealand/prime-minister-jacinda-ardern-hold-impromptu-press-conference-9-15pm</a>

New Zealand Reports First New Cases of Community Transmission in 102 Days

Investors not keeping close tabs on developed Asia-Pacific markets this year may be surprised as to what that region&#39;s best-performing equity market is.
Credible guesses would be Australia or Japan, but those would be wrong.
<h3>What To Know</h3>
The iShares MSCI New Zealand ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/enzl#NASDAQ">ENZL</a>) is up 12.6&nbsp;percent year to date. Entering Monday, the lone New Zealand ETF trading in the U.S. was beating the comparable Australia, Hong Kong and Japan ETFs. ENZL is also beating the MSCI Pacific Investable Market Index by more than 500 basis points this year.
New Zealand stocks are benefiting even as other markets in Asia flail because the country&#39;s economy and equity markets are mostly insulated from the U.S.-China trade war.
&ldquo;New Zealand is relatively insulated from the trade tensions, and that has sent its market to new heights,&rdquo; <a href="https://www.bloomberg.com/news/articles/2019-05-20/record-breaking-kiwi-stocks-overtake-china-as-asia-s-best-market">reports Bloomberg</a>.
<h3>Why It&#39;s Important</h3>
ENZL has a <a href="https://www.ishares.com/us/products/239672/?referrer=tickerSearch">three-year standard deviation</a> of 13.25 percent, which compares favorably with some of the other major Asia-Pacific benchmarks, tracking both developed and emerging markets. At the sector level, ENZL is highly defensive, adding the to allure of New Zealand stocks for investors looking to skirt markets vulnerable to trade tensions.
&ldquo;The Kiwi bourse is also home to many defensive stocks, a draw with investors in the current risk-off environment,&rdquo; according to Bloomberg. &ldquo;The central bank has contributed to the bullish fervor by cutting interest rates to a <a href="https://www.bloomberg.com/news/articles/2019-05-08/new-zealand-cuts-interest-rates-to-historic-low-currency-drops">fresh record low</a>, becoming the first among developed-world economies to ease policy this cycle.&rdquo;
ENZL allocates over 53 percent of its combined weight to the defensive health care, utilities and consumer staples sectors. Throw an almost 9.3 percent weight to real estate stocks and ENZL is a highly defensive ETF.
<h3>What&#39;s Next</h3>
By combined market value, New Zealand is a small equity market at $90 billion, as Bloomberg notes. Even with a month-to-date loss of more than 24 percent, Dow component 3M Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mmm#NYSE">MMM</a>) has a larger market capitalization on its own at $97.37 billion than the entire New Zealand equity market.
Still, New Zealand stocks have been impressive for several years. Over the past three years, ENZL has topped the comparable Australia and Japan ETFs while beating the MSCI Pacific Investable Market Index by a wide margin.
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/19/05/13768882/a-small-cap-etf-for-globe-trotting-investors">A Small-Cap ETF With Big Potential</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/19/05/13761381/better-a-way-to-emerging-markets-virtue">EM Meets ESG Here</a>

-CNN
<a href="https://www-m.cnn.com/2019/03/14/asia/christchurch-mosque-shooting-intl/index.html?r=https%3A%2F%2Ft.co%2F1PaBbeDe1J" title="https://www-m.cnn.com/2019/03/14/asia/christchurch-mosque-shooting-intl/index.html?r=https%3A%2F%2Ft.co%2F1PaBbeDe1J">https://www-m.cnn.com/2019/03/14/asia/christchurch-mosque-shooting-intl/index.html?r=https%3A%2F%2Ft.co%2F1PaBbeDe1J</a>

49 Dead in Shootings at 2 Mosques in Christchurch, New Zealand

<a href="https://www.reuters.com/article/australia-stocks-midday/australian-nz-shares-get-boost-from-us-china-trade-talks-idUSL3N1Z000G" title="https://www.reuters.com/article/australia-stocks-midday/australian-nz-shares-get-boost-from-us-china-trade-talks-idUSL3N1Z000G">https://www.reuters.com/article/australia-stocks-midday/australian-nz-shares-get-boost-from-us-china-trade-talks-idUSL3N1Z000G</a>

Australia, New Zealand Shares Open Higher on Progress in U.S.-China Trade Talks

Investors are embracing ex-U.S. developed market equities and the corresponding exchange-traded funds this year. While much of that affinity is directed at Europe ETFs and funds tracking broader developed market indexes, investors might do well to remember Australia.
The iShares MSCI Australia Index Fund (ETF) (NYSE: <a class="ticker" href="/stock/ewa#NYSE">EWA</a>) and the WisdomTree Australia Dividend Fund (NYSE: <a class="ticker" href="/stock/ause#NYSE">AUSE</a>) are both up more than 7 percent this year.
<h3>EWA's Allocations</h3>
&ldquo;When we look at the underlying holdings within EWA, we see a heavy allocation to Financials (43 percent), followed by lesser sector exposures to Basic Materials (15 percent), Real Estate (9 percent), and so on throughout the portfolio,&rdquo; said <a href="http://streetonefinancial.com/">Street One Financial</a> Vice President Paul Weisbruch in a note out last week. &ldquo;Top individual holdings are as follows: 1) Commonwealth Bank of Australia (10.91 percent), 2) Westpac Banking Corp (8.41 percent), 3) Australia and New Zealand Banking Group Ltd (6.67 percent), 4) National Australia Bank Ltd (6.41 percent), and 5) BHP Billiton Ltd. (6 percent).&rdquo;
<h3>AUSE's Allocations</h3>
AUSE, the WisdomTree offering provides investors with some exposure to the Australian consumer, a theme that could improve as the interest rate environment there remains sanguine and the economy receives support from areas beyond materials and mining. AUSE allocates <a href="https://www.wisdomtree.com/etfs/equity/ause">over 22 percent of its weight</a> to consumer discretionary and staples stocks.
<h3>And New Zealand's ENZL...</h3>
Another tactical idea to consider among developed markets single-country ETFs is the iShares MSCI New Zealand Capped ETF (NYSE: <a class="ticker" href="/stock/enzl#NYSE">ENZL</a>). ENZL, the only ETF dedicated to stocks in New Zealand, is up nearly 9 percent year to date and has been less volatile than the rival EWA.
&ldquo;New Zealand has a much different look from a sector standpoint, as it is more evenly balanced than Australia from a market capitalization perspective. Utilities make up 18 percent of the portfolio, followed by a 16 percent weighting to Healthcare, a 14 percent allocation to Industrials, a 13 percent weighting to Telecommunications, a 10 percent slice allocated to Consumer Discretionary and so on throughout the portfolio,&rdquo; said Weisbruch.
One reason investors may want to examine Australia and New Zealand ETFs is yield. Outside of the U.S., these are two of the highest-yielding developed markets. Trailing 12-month dividend yields on EWA and ENZL are 3.6 percent and 4.4 percent, respectively.
Related Links:
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/05/9443032/a-scintillating-south-korea-etf">A Scintillating South Korea ETF</a>
<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/05/9469335/thailand-etf-tries-to-shed-laggard-status">Thailand ETF Tries To Shed Laggard Status</a>

M7.4 Earthquake Hits Near Christchurch, New Zealand - USGS

A leader has been toppled after an 11-year stint at the top.

	New Zealand is the aggressor that managed to unseat Singapore from the No. 1 position in the ranking of countries allowing businesses to go about their business with ease.

	The news of a new leader, first reported <a href="http://pro.benzinga.com">by Benzinga</a>, is based on an index called the &quot;Ease of Doing Business Index&quot; compiled by the World Bank and released annually. The bank takes into consideration parameters such as simpler regulations for businesses and strong protection of property rights among other parameters to arrive at the index.

	The Doing Business Report was first released in 2003, and has since then become an annual affair. The findings from the report help to highlight the red tape prevalent in countries and promote reforms when there is an inadequacy.

	The Doing Business 2017 report looked at 190 economies of the world.

	European countries fared better, with Denmark, Norway, UK, Sweden and Macedonia all finding their place among the top 10 nations. New Zealand, Singapore (which has been relegated to the second spot), Hong Kong, the Korea Republic and the US made up the rest of the slot in the top 10.

	At last check, iShares MSCI New Zealand Invest ETF (NASDAQ: <a class="ticker" href="/stock/enzl#NASDAQ">ENZL</a>) was up 1.12 percent at $43.35.

New Zealand Tops World Bank's 'Ease Of Doing Business' Index

Economics

Market-Moving Exclusives

Exclusives

Sources Tell Benzinga That For The First Time In Over A Decade, New Zealand Will Overake Singapore As #1 In The World Bank's 'Ease of Doing Business' List Today At Noon ET

When it comes to individual countries and dividends, the United States is the undisputed leader. Outside the United States, the U.K. is probably the first country that comes to many investors&#39; minds regarding dividends and dependable payout growth.
With so many ex-U.S. developed markets implementing negative interest rates and more than $10 trillion worth of negative-yielding floating around the developed world, yield is increasingly hard to come by. Those factors and others increase the allure of New Zealand and the Shares MSCI New Zealand Capped ETF (iShares Trust (NYSE: <a class="ticker" href="/stock/enzl#NYSE">ENZL</a>)) as credible dividend destinations.
<h3>Look Toward New Zealand</h3>
ENZL has also recently been making a series of all-time highs, a trend that may continue following another interest rate reduction courtesy of the Reserve Bank of New Zealand (RBNZ). Last month, RBNZ said it cut New Zealand&#39;s benchmark lending rate by 25 basis points to an all-time low <a href="http://www.stuff.co.nz/business/industries/83050091/rate-cut-on-thursday-morning--but-by-how-much">of 2 percent</a>. Interest rates as low as 2 percent are news in New Zealand, but that is still much higher than what investors will find in the United States, the U.K., the eurozone and Japan.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/09/8460310/hola-problemos-for-the-spain-etf">Hay Problemas For The Spain ETF</a></bzrelatedlink>
An interesting fact that many U.S. investors may not be aware of is New Zealand&#39;s enviable perch as an unsung dividend leader.
&ldquo;New Zealand companies pay out more profits as dividends than any other country in the world, with an aggregate distribution of 84 percent of earnings in 2015, much higher than the 48 percent in the U.S. and 54 percent globally,&rdquo; according to S&amp;P Dow Jones Indices.
<h3>Envy For The ENZL</h3>
S&amp;P Dow Jones Indices issues New Zealand&#39;s benchmark S&amp;P/NZX 50 Index as well as the <a href="http://spindices.com/indices/strategy/sp-nzx-50-high-dividend-index">S&amp;P/NZX 50 High Dividend Index</a>. ENZL, the lone U.S.-listed ETF dedicated to New Zealand stocks, tracks the MSCI New Zealand IMI 25/50 Index. The $176.6 million ETF is home to 28 stocks.
Although interest rates have been steadily falling in New Zealand, ENZL&#39;s trailing 12-month dividend yield is 2.6 percent, or 54 basis points higher than the comparable yield on the S&amp;P 500. Dividend yields decline when equity prices rise and that is indeed the case with ENZL this year. The ETF is up 24.1 percent including paid dividends, or more than quadruple the returns offered by the comparable Australia ETF.
&ldquo;One primary reason for this high payout ratio may be New Zealand&rsquo;s dividend imputation regime, a rarity among countries around the world. &nbsp;The imputation policy boosts total return by promoting a good corporate dividend payout policy. More than 80 percent of New Zealand corporations surveyed by Ernst &amp; Young in 2014 listed &#39;meeting dividend payout target&#39; as a leading driver of dividend policy,&rdquo; added S&amp;P Dow Jones Indices.
<a href="https://pro.benzinga.com/?utm_source=Benzinga&amp;utm_medium=Benzinga%20Top%20of%20Article&amp;am%22%3">Full ratings data available on Benzinga Pro.</a>
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email <a href="mailto:feedback@benzinga.com">feedback@benzinga.com</a> with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Dividends

This Country ETF Is A Legitimate Dividend Destination

Quiet as it has been kept, the iShares MSCI New Zealand Capped ETF (NYSE: <a class="ticker" href="/stock/enzl#NYSE">ENZL</a>) is up more than 25 percent year-to-date, making it one of the best-performing developed markets single-country exchange traded funds.

	ENZL has also recently been making a series of all-time highs, a trend that may continue following another interest rate reduction courtesy of the Reserve Bank of New Zealand (RBNZ). During Thursday&#39;s Asian session, RBNZ said it cut New Zealand&#39;s benchmark lending rate by 25 basis points to an all-time low <a href="http://www.stuff.co.nz/business/industries/83050091/rate-cut-on-thursday-morning--but-by-how-much">of 2 percent</a>.

	While many U.S. investors don&#39;t pay a lot of attention to the goings on in New Zealand or the country&#39;s monetary policy, the fact that RBNZ has cut rate multiple times this year is significant because it&#39;s telling about the current state of affairs for global central banks.

	In 2014, RBNZ actually tried bucking the trend set by its counterparts in other developed nations by, gasp, modestly raising rates. As recently as 2008, New Zealand&#39;s interest rates were as high as eight percent.

	Alas, RBNZ is likely cutting rates, at least in part, to weaken the New Zealand dollar. At the start of this year, 64 U.S. cents bought one New Zealand dollar. At this writing, it takes about 72.6 cents to buy one kiwi, and that kiwi strength has come without the benefit of interest rate hikes.

	Kiwi strength is significant regarding ENZL because the ETF is not currency hedged, meaning investors in the fund should root for a stronger New Zealand currency. Although New Zealand is viewed as an export-driven economy, many of the ENZL&#39;s 29 holdings are not major exporters to the U.S., so a stronger kiwi works in investors&#39; favor with this ETF.

	Interestingly, and it should be noted this space is usually not one to indulge conspiracy theories, data suggest some traders were betting on the rate cut because ENZL has added $11.4 million in new assets this month. That does not sound like much, but it is a decent percentage of ETF&#39;s $146.3 million in assets under management.

	Year-to-date, investors have allocated $51.7 million to ENZL.

Forex

Another Rate Cut Could Boost New Zealand ETF

Forty-two (42) exchange-traded funds hit all-time highs on Thursday, and nearly all of those were U.S.-focused funds. One of the small number of international ETFs to touch a new high Thursday was the iShares MSCI New Zealand Capped ETF (iShares Trust(NASDAQ: <a class="ticker" href="/stock/enzl#NASDAQ">ENZL</a>)).
<h3>Geographics Don't Always Equal Correlation</h3>
ENZL is now up nearly 18 percent year-to-date, and it is a quiet 18 percent at that. Logically, some global investors believe Australian and New Zealand stocks are tightly correlated. That has not been the case this year, as the iShares MSCI Australia Index Fund (ETF) (NYSE: <a class="ticker" href="/stock/ewa#NYSE">EWA</a>) is higher by just 1.5 percent. A rebounding New Zealand dollar is helping ENZL trek higher.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/07/8192204/greece-etf-needs-a-shot-of-confidence">Greece ETF Needs A Shot Of Confidence</a></bzrelatedlink>
At the start of this year, 64 U.S. cents bought one New Zealand dollar. At this writing, it takes about 72.5 cents to buy one kiwi, and that kiwi strength has come without the benefit of interest rate hikes. The Reserve Bank of New Zealand (RBNZ), like its peer in Australia, has been cutting interest rates, but that policy is at risk of ceasing in the near term.
&ldquo;Traders pared bets on a New Zealand interest-rate cut next month after the central bank said further reductions could pose a risk to financial stability by throwing fuel on an overheated housing market,&rdquo; <a href="http://www.bloomberg.com/news/articles/2016-07-08/new-zealand-rate-cut-bets-pared-after-rbnz-warns-on-housing-heat">according to Bloomberg</a>.
<h3>Real Estate And Fed Factors</h3>
However, the housing market song and dance is one frequently performed by the RBNZ. In March, RBNZ lowered interest rates to 2.25 percent in a move widely regarded as surprising. Why that view was surprising is actually what is surprising because prior to the cut last week, RBNZ had already pared borrowing cuts four times in the past year and long gone have been the days when it looked like RBNZ would join with the Federal Reserve as the developed market central banks bold enough to raise rates.
Put it this way: New Zealand&#39;s benchmark borrowing rate of 2.25 percent is high by developed world standards and arguably enticing to foreign investors, but that does not mean RBNZ is shy about cutting rates. As recently as 2008, New Zealand&#39;s interest rates were as high as 8 percent.
ENZL&#39;s trailing 12-month dividend yield is 3.83 percent, and the ETF has some allure, as a satellite position for yield investors. In some ways, ENZL looks like U.S. high dividend ETF with a combined allocation of almost 30 percent to utilities and telecom stocks. ENZL&#39;s three-year standard deviation is almost 20 percent.

A Kool Kiwi: New Zealand ETF Races Higher

Last week, the Reserve Bank of New Zealand (RBNZ) lowered interest rates to 2.25 percent in a move widely regarded as surprising. Why that view was surprising is actually what is surprising because prior to the cut last week, RBNZ had already pared borrowing cuts four times in the past year and long gone have been the days when it looked like RBNZ would join with the Federal Reserve as the developed market central banks bold enough to raise rates.

	One more rate cut and New Zealand will tie Australia with benchmark interest rates of 2 percent. That prospect is certainly on the table because RBNZ did not say anything to make anyone think anything but <a href="http://www.smh.com.au/business/markets/new-zealand-interest-rates-headed-as-low-as-australias-20160309-gnf3bv.html">more cuts are on the way</a>.

	RBNZ policy is not doing much to stir the iShares MSCI New Zealand Capped ETF (NASDAQ: <a class="ticker" href="/stock/enzl#NASDAQ">ENZL</a>), which has traded modestly lower over the past week. To be fair to the lone New Zealand exchange traded fund listed in the U.S., ENZL is up 9.2 percent over the past month.

	Related Link: <a href="http://www.benzinga.com/news/16/03/7703615/what-a-brexit-could-mean-for-u-k-etfs">What A Brexit Could Mean For U.K. ETFs</a>

	Buoyed by rising commodities prices, ENZL is up 2 percent and although interest rates in New Zealand are falling, the ETF sports a tantalizing trailing 12-month dividend yield of 4.4 percent. Still, there are some issues to be mindful of with ENZL. <a href="http:// https://www.fitchratings.com/site/fitch-home/pressrelease?id=1000771">Fitch Ratings</a> said New Zealand&#39;s low interest rate environment with hurt bank profitability there.

	Additionally, a weaker New Zealand dollar, while mostly seen as a positive for New Zealand&#39;s export-driven economy, is not necessarily good news for ENZL because the ETF is not a currency hedged fund. The bottom line with ENZL is that the ETF debuted in September 2010 and over those roughly five and half years, the fund performed better when the country&#39;s rates were high and its kiwi (NZD) strong.

	&ldquo;The rate cut should put downward pressure on the NZD/USD exchange rate, helping to spur growth in service exports and supporting employment. It will also particularly benefit households - in light of high household debt, and stagnating house-price growth in Auckland. Residential mortgages dominate New Zealand banks&#39; household exposure, and the improved serviceability that will come with low rates should help to maintain asset quality for this sector in the short term,&rdquo; said Fitch.

	Applying U.S. interest rate logic to ENZL, lower rates should be of some benefit because the ETF allocates a combined 31.5 percent of its weight to utilities and telecom stocks.

	&ldquo;New Zealand&#39;s banks will continue to benefit from strong franchises, parent support and generally stable funding profiles despite the ongoing challenges from the macroeconomic environment. Banks are well capitalised - sufficient to withstand significant losses that would be caused by a major shock in either the housing or dairy sectors - and should be strengthened by continued issuance of hybrid issuance in FY16. Each of the four major New Zealand banks are rated &#39;AA-/Stable&#39;,&rdquo; adds Fitch.

	Financial services stocks account for about 9.5 percent of ENZL, the ETF&#39;s seventh-largest sector weight.

Short Ideas

Rate Cut No Elixir For New Zealand ETF

The Transparency International 2014 Corruption Perceptions Index has been released and, according to the report, the least corrupt nations on Earth are Denmark, New Zealand, Finland and Sweden. There has been no change to the top four over the last two years. The United States came in at an unimpressive ranking of 17.

	As investors look overseas for investing opportunities, it may not hurt to invest money in countries where corruption is not a major issue. On the flipside, their perception of corruption level does not necessarily suggest investment returns greater than their peers. Below is a look at the performance of ETFs that track the top four countries.
<h3>
	iShares MSCI Denmark</h3>

	The iShares MSCI Denmark Capped ETF is a basket of 41 Danish stocks with a heavy emphasis on the <a href="http://www.benzinga.com/industrials">industrial</a> and <a href="http://www.benzinga.com/topic/financial-sector">financial</a> sectors. The ETF has struggled to regain its high from earlier this year, but remains higher by 8 percent in 2014. With 23 percent of the portfolio invested in Novo Nordisk A/S (ADR) (NYSE: <a class="ticker" href="/stock/nvo#NYSE">NVO</a>), the ETF will often be driven by big moves in the <a href="http://www.benzinga.com/pharmaceutical">pharmaceutical stock</a> that is currently trading 6 percent below an all-time high set in September. The expense ratio is 0.53 percent.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/12/3152663/corruption-conundrum-some-corrupt-nations-have-great-etfs">Corruption Conundrum: Some Corrupt Nations Have Great ETFs</a></bzrelatedlink>
<h3>
	iShares MSCI New Zealand</h3>

	The iShares Trust (NYSE: <a class="ticker" href="/stock/enzl#NYSE">ENZL</a>) is composed of 31 stocks that are spread amongst several sectors, giving investors diversity within the country. The ETF is up 8 percent this year and is also struggling to get back to the all-time high it set early May. It is difficult for U.S. investors to gain access to the island country, and this ETF is probably the best route for gaining exposure to New Zealand. The expense ratio is 0.48 percent.
<h3>
	iShares MSCI Finland</h3>

	The iShares MSCI Finland Capped ETF has 40 Finish companies in the portfolio, with the most renowned making up 20 percent of the allocation. The communication equipment company, Nokia Corporation (ADR) (NYSE: <a class="ticker" href="/stock/nok#NYSE">NOK</a>), is the ETF&rsquo;s largest holding, but there is also a high exposure to the industrial sector. The ETF has struggled this year with a loss of 5 percent, and it is down 12 percent from the early June all-time high. The expense ratio is 0.53 percent.
<h3>
	iShares MSCI Sweden</h3>

	The iShares MSCI Sweden Index (ETF) (NYSE: <a class="ticker" href="/stock/ewd#NYSE">EWD</a>) is made up of 32 stocks with over half of the portfolio in the financials and industrial sectors. The majority of the stocks in the portfolio do not trade on a major U.S. exchange, however Ericsson (ADR) (NASDAQ: <a class="ticker" href="/stock/eric#NASDAQ">ERIC</a>), the communication equipment firm, is the No. 2 holding at 10 percent of the portfolio. The ETF is down 7 percent in 2014 as it failed once again earlier this year at a significant resistance level near $38 per share. The expense ratio is 0.48 percent.

	While it would be great to invest in a country that has little to no corruption, it does not always correlate to better-than-average gains. All four ETFs above have lagged the S&amp;P 500 in 2014, and are struggling to regain the old highs set earlier this year.

EDEN

EFNL

ERIC

A Look At 4 ETFs From The 4 'Least Corrupt' Countries

Over the weekend, New Zealand Prime Minister John Key celebrated an <a href="http://online.wsj.com/articles/new-zealand-election-sees-prime-minister-john-key-win-third-term-1411216774">election victory</a> and the country&rsquo;s stock market rallied 1.3 percent to kick off the week. The gain was even more impressive when compared to the worldwide sell-off in equities Monday.

	The National Party won 48 percent of the vote and therefore Key will return for a third term as the Prime Minister. The biggest winners in the election were the energy companies, as the competing Labour Party was pushing for an intervention in the energy market that could have directly affect profits in the sector.

	For U.S. investors, there is an ETF that concentrates solely on stocks based in the country.

	The Shares MSCI New Zealand Capped ETF (NYSE: <a class="ticker" href="/stock/enzl#NYSE">ENZL</a>) provides exposure to a broad range of companies in New Zealand. The ETF is spread across 11 sectors, with the largest exposure to the material stocks at 14.9 percent, followed by utilities at 14.5 percent. The largest individual holdings include Fletcher Building Limited with a 13.3 percent holding, Telecom Corp of New Zealand LTD at 12.2 percent and Auckland International Airport LTD making up 7.6 percent of the ETF.

	The ETF is only up 3.7 percent over the last 12 months and has struggled as of late, down 5.3 percent over the last six months. The longer-term chart shows a solid uptrend since it began the most recent bull market in 2012. The pullback to the $39 area in the last few months has the ETF sitting on long-term support and could be an area that attracts buyers after the big election win for the ruling party.

	The ETF has a 30-day SEC yield of 3.5 percent and an expense ratio of 0.47 percent.

New Zealand ETF Higher After Election

ETF Outlook for Friday, March 14, 2014

	iShares MSCI Germany Index ETF (NYSE: <a class="ticker" href="/stock/ewg#NYSE">EWG</a>)

	The European ETFs took a beating Thursday with the regions top economy leading the sell-off. EWG closed lower by 2.9 percent, its biggest one-day drop this year. The situation in Ukraine has slowly been getting worse and this has led to investors selling stocks in the region.

	The ETF has now moved to a level that bears watching. The 2014 low of $29.31 that was hit in early February could prove to be support and an opportunity for the ETF to bounce. However, if the news headlines remain negative it could have the ETF breaching the important support level.

	SPDR Utilities ETF (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>)

	Other than the gold mining stocks, the only sector that was able to close in the green yesterday was the utility stocks. XLU finished with an impressive gain of 1.0 percent on heavy volume. The closing price of $40.70 was the best level for the ETF in ten months. Money was flowing into the sector for two reasons.

	See also: <a href="http://www.benzinga.com/analyst-ratings/analyst-color/14/03/4385270/homebuilding-sector-at-credit-suisse-what-you-need-to-kn">Homebuilding Sector At Credit Suisse - What You Need To Know</a>

	First, the utilities are seen as a defensive sector when money is flowing out of perceived high-risk sectors. Then there is the yield factor. Most utilities pay above-average dividends and as interest rates on bonds fall it makes the yields on the stocks more attractive.

	Rydex CurrencyShares Japanese Yen ETF (NYSE: <a class="ticker" href="/stock/fxy#NYSE">FXY</a>)

	The currency that has been held down by the actions of the Bank of Japan the last year rallied yesterday on the unrest in the Ukraine. Prior to the manipulation by the Bank of Japan the yen would act as a currency of safety when geopolitical events or market sell-offs hit the headlines.

	Apparently that strategy is back as money was flowing into FXY at a rate not seen since June of last year. The move will likely be short-lived as there is significant resistance at $97 and the ETF closed at $96.07 yesterday.

	iShares MSCI New Zealand Investable Market ETF (NYSE: <a class="ticker" href="/stock/enzl#NYSE">ENZL</a>)

	One of the few bright spots around the globe yesterday was the action in ENZL, which closed at the best level since it began trading in 2010. The gain of 0.8 percent was 190 basis points better than the S&amp;P 500 for the day. On Thursday the Reserve Bank of New Zealand raised interest rate by 25 basis points to 2.75 percent.

	It was the first major developed country to increase interest rates since the U.S. began its tapering late last year. The bank decided on the move due to a surge in economic growth that has been driven by soaring dairy exports and a construction boom.

Sector ETFs

Emerging Market ETFs

Currency ETFs

Pre-Market Outlook

ETF Outlook For Friday, March 14, 2014 (EWG, XLU, FXY, ENZL)

Magnitude 6.2 Earthquake Reported in Wellington, New Zealand

ETF Outlook for Wednesday December 11, 2013

	SPDR Financial ETF (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>)

	The passage of the Volcker Rule on Tuesday did not have a big impact on the large financial firms. At one point Goldman Sachs (NYSE: <a class="ticker" href="/stock/gs#NYSE">GS</a>) was trading at its best intraday level in several years.

	Related: <a href="http://www.benzinga.com/news/earnings/13/12/4146366/premarket-primer-for-december-11-us-government-takes-first-steps-towards#ixzz2nAMXpTQK">#PreMarket Primer for December 11: US Government Takes First Steps Towards Budget Deal</a>

	XLF finished the day with a minimal loss of 0.3 percent and is not far from a five-year high. The muted reaction could be due to the fact that investors had anticipated the rule was going to be passed at some point. And even more importantly, the large financial firms were prepared for the new rules.

	iShares S&amp;P North America Technology-Multimedia Networking ETF (NYSE: <a class="ticker" href="/stock/ign#NYSE">IGN</a>)

	After the closing bell last night Citi upgraded shares of Qualcomm (NASDAQ: <a class="ticker" href="/stock/qcom#NASDAQ">QCOM</a>) and started Cisco (NASDAQ: <a class="ticker" href="/stock/csco#NASDAQ">CSCO</a>)and Brocade (NASDAQ: <a class="ticker" href="/stock/brcd#NASDAQ">BRCD</a>) with Sell recommendations. The stocks were moving in the direction of the new calls made by Citi. All three stocks are in the top seven holdings of IGN and make up a combined 22 percent of the entire ETF.

	Even though there was both buy and sell recommendations by the firm, there is a high probability the ETF will be on the move today as investors make both bullish and bearish moves.

	PowerShares Dynamic Biotech ETF (NYSE: <a class="ticker" href="/stock/pbe#NYSE">PBE</a>)

	After hitting an all-time high two weeks ago, the ETF has pulled back four percent after another 1.1 percent fall yesterday. The chart of PBE is one of the most interesting of the sector ETFs. The pullback has brought the ETF to prices support at $36 and the 50-day moving average that is also in the area.

	Add in the ETF moving from overbought and due for some selling to oversold and it appears PBE is ripe for a bounce in the next couple of days. The support area to watch is $35.50 to $36.00.

	iShares MSCI Australia ETF (NYSE: <a class="ticker" href="/stock/ewa#NYSE">EWA</a>)

	The last six weeks have not been kind to Australian equities. The ETF is down over 10 percent and yesterday hit a new three month low. Over the last few years the ETF has been a disappointment as falling commodity prices couple with a slowing in China has hurt the Aussie economy.

	With the outlook for commodity prices from gold to coal still bearish it could be some time until the land down under is able to recover fully. When compared its peers, in particularly the iShares MSCI New Zealand Investable Market ETF (NYSE: <a class="ticker" href="/stock/enzl#NYSE">ENZL</a>), the ETF is not a buying opportunity because there are better options in the market.

Previews

BRCD

CSCO

PowerShares ETF Trust Dynamic Biotech & Genome Port

QCOM

ETF Outlook for Wednesday, December 11, 2013 (IGN, PBE, EWA, XLF)

Here is your ETF Outlook for the Week of November 11, 2013

	SPDR Dow Jones Industrial Average ETF (NYSE: <a class="ticker" href="/stock/dia#NYSE">DIA</a>)

	The basket of 30 large-cap stocks hit a new all-time closing high on Friday as the S&amp;P 500 and NASDAQ have yet to break thought their 2013 highs.

	The rally in the Dow was led by tech names Microsoft (NASDAQ: <a class="ticker" href="/stock/msft#NASDAQ">MSFT</a>) and Cisco (NASDAQ: <a class="ticker" href="/stock/csco#NASDAQ">CSCO</a>), both gaining over 4 percent last week. Year-to-date the ETF is up 20.6 percent and is lagging the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) and is still an inferior investment choice to the SPY over the long-term. But it is always bullish to have such a widely followed index breakout to an all-time high before a weekend.

	iShares MSCI Emerging Markets ETF (NYSE: <a class="ticker" href="/stock/eem#NYSE">EEM</a>)

	One of the biggest laggards this past week was the emerging market stocks. The major player in the world of emerging market ETFS, EEM, lost 3 percent in the last week and is trading at the lowest level in a month.

	This is happening as the Dow hit a new all-time high. The last time interest rates increased in the U.S. it hit the emerging market and the increase the last two weeks has had the same affect on EEM. The level to watch this week on EEM is $40.10, which is important support. The ETF traded as low as $40.75 on Friday before closing at $41.16.

	iShares Dow Jones U.S. Regional Banks ETF (NYSE: <a class="ticker" href="/stock/iat#NYSE">IAT</a>)

	The jobs number on Friday sent the yield on the 10-year Treasury to 2.74 percent, an increase of 5.1 percent from Thursday. This is leading to the creation of a steeper yield curve, which will be good for the banks as they will be more inclined to lend money.

	IAT is a basket of regional banks that rely on lending to consumers and small businesses and a pickup in that portion of their business would be a boost to the bottom line. The ETF closed up 3.0 percent on Friday to the best level in five years. Keep an eye on the regionals as they will likely outperform the larger SPDR Financial ETF (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>).

	iShares MSCI New Zealand Investable Market ETF (NYSE: <a class="ticker" href="/stock/enzl#NYSE">ENZL</a>)

	The top performing ETF last week with a gain of 2.1 percent, it hit a new high on Wednesday before pulling back with the world markets on Thursday.

	The New Zealand benchmark NZX 50 hit a new all-time high last week as it was lead by Xero, a cloud based software company that is now the second largest company in the index. New Zealand is a country that is often overshadowed by Australia, but this year it has been a much better performer by outpacing its neighboring country by 10 percent.

	United States Gasoline ETF (NYSE: <a class="ticker" href="/stock/uga#NYSE">UGA</a>)

	The ETF that tracks the futures price of gasoline has fallen to a level it has hit four times in the last year. UGA hit a low of $53.56 this week before rallying on Friday with the energy commodities.

	The chart below shows the multiple times UGA has hit the $53.50 area before rallying. There are two ways to approach this chart. First would be to buy near the support line with a stop-loss at $52.50. The second would be to short the ETF if it breaks below support and confirms a breakdown. This week should give insight into which strategy is the best option.

	<img alt="" src="/files/images/2013/November/11/uga_screen_shot_2013-11-09_at_1.12.10_pm.png" />

Broad U.S. Equity ETFs

SPDR Dow Jones Industrial Average ETF Trust

iShares Dow Jones US Regional Banks Index Fund

MSFT

ETF Outlook for the Week of November 11, 2013 (EEM, IAT, DIA, UGA)

NZL Trade Balance for August -1.19B vs -743.0M consensus estimate. The prior reading was -774.0M.

Econ #s

NZL Trade Balance for August -1.19B vs -743.0M Est; Prior -774.0M

NZL Manufacturing Sales (QoQ) for Q2 -3.40% vs -0.60% prior reading.

NZL Manufacturing Sales (QoQ) for Q2 -3.40% vs -0.60% Prior

Week Ahead - U.S. Inflation And Earnings, Central Banker Appearances In Abundance

Cyclical Outlook October 2023: Post Peak

Week Ahead - U.S. Retail Sales And Earnings, Major Chinese Data, U.K. Inflation And Employment Readings

Week Ahead - ECB Set To Pause Tightening Cycle, A Big Week For Earnings

iShares MSCI New Zealand ETF declares semi-annual distribution of $0.9807

Weekly Commentary: Failed

Weekly Commentary: That's Our Story.

In the shadow of news of a new recession, here's how we see NZD now and what to expect.