Greetings!
Below please find the ETF Spotlight Australia newsletter containing highlights of the research and data on www.etfresearchcentre.com.au as well as a recap of the past month's action in the Australian ETF market.
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In this week's issue
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 ETFs for Tech exposure
- Chart of the month: Sector breakdown of Taiwan and Korea funds
- Fund Focus: iShares MSCI S. Korea (IKO AU)
- 2011 EPS estimates, annual change, and P/E multiples
- Market monitor - movers & categories
To download the full newsletter click here.
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| Chart of the week |
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ETFs for Tech exposure
As the smallest sector in the SPDR S&P/ASX 200 (STW AU), it's difficult for Australian ETF investors to get exposure to Technology. However two international ETFs, the iShares MSCI Taiwan (ITW AU) and Korea (IKO AU) funds, offer significant Tech exposure. Korea has a bit less but enjoys a higher ALTAR Score rating of 7.8% versus 5.4% for Taiwan. Korea is the subject of this month's Fund Focus on the following page.
A third fund, the iShares S&P Asia 50 (IAA AU) has about 26% of assets in Tech, but it is also heavily exposed to Financials (including Chinese banks!), a sector in which S&P/ASX 200 investors already have plenty of exposure.
Download the full newsletter here.
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| Fund Focus |
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iShares MSCI S. Korea (IKO AU)
Both margins and ROE appear to be holding steady near peak levels, but robust sales growth powered by Korea's Tech and Industrial sectors should allow EPS to continue growing at double digits through 2012. (IKO may also be a good way for Aussie ETF investors to increase exposure to the those sectors). Meanwhile, Korean stocks still trade at reasonable valuation multiples, giving them a higher ALTAR Score than stocks in the Taiwan (ITW AU) or Japan (IJP AU) funds.
To download the full newsletter, click here.
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