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EWA - ETF AI Analysis

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EWA

iShares MSCI Australia ETF (EWA)

Rating:66Neutral
Price Target:
EWA, the iShares MSCI Australia ETF, has a solid overall rating driven mainly by large, well-established Australian banks and resource companies that show strong financial performance and attractive dividends. Heavyweights like BHP and Rio Tinto support the fund with robust profitability and balance sheets, while CSL adds quality through strong fundamentals and strategic initiatives. The main risk is the ETF’s concentration in a few big financial and commodity names, and weaker spots like Macquarie’s mixed results and higher leverage slightly hold back the overall rating.
Positive Factors
Large, Established Companies
The ETF’s biggest positions are in well-known Australian blue-chip companies, which can provide stability and liquidity for investors.
Support from Strong Materials and Health Care Names
Several top holdings in the materials and health care sectors have shown strong recent performance, helping offset weaker bank stocks.
Meaningful Size
With over a billion dollars in assets, the fund is large enough to offer good trading liquidity and ongoing viability for investors.
Negative Factors
Heavy Concentration in Financials
A large share of the portfolio is in Australian banks and other financial companies, which increases the fund’s sensitivity to that sector.
Mixed Performance from Top Holdings
Several of the largest bank holdings have shown weak recent performance, which has weighed on the ETF’s short-term returns.
Relatively High Expense Ratio
The fund’s ongoing fee is on the higher side for a broad country ETF, which slightly reduces the net return investors keep over time.

EWA vs. SPDR S&P 500 ETF (SPY)

EWA Summary

The iShares MSCI Australia ETF (EWA) is a fund that aims to track the MSCI Australia Index, giving you broad exposure to major Australian companies. It holds large banks and resource firms, including well-known names like Commonwealth Bank of Australia and BHP Group. Investors might consider EWA to diversify outside their home country and gain a stake in Australia’s banking and mining sectors in a single, easy-to-trade investment. A key risk is that the fund is heavily tied to Australia’s economy and stock market, so its value can rise or fall with that market and its financial and materials sectors.
How much will it cost me?The iShares MSCI Australia ETF (EWA) has an expense ratio of 0.50%, meaning you’ll pay $5 per year for every $1,000 invested. This is higher than average for ETFs because it tracks a specific international market, which typically involves more management and costs compared to broad, passively managed funds like U.S. index ETFs.
What would affect this ETF?The iShares MSCI Australia ETF (EWA) could benefit from strong global demand for commodities, as materials and mining companies like BHP and Rio Tinto are key holdings, and Australia is a resource-rich economy. However, its heavy exposure to financials, including major banks like Commonwealth Bank and Westpac, makes it sensitive to changes in interest rates or economic slowdowns that could impact lending and profitability. Additionally, regulatory changes or geopolitical tensions in the Asia-Pacific region could pose risks to its performance.

EWA Top 10 Holdings

EWA is very much an Australia story, with the big four banks and heavyweight miners steering the ship. Commonwealth Bank, NAB, Westpac, and ANZ dominate the fund, and while they’ve been soft lately, their longer-term trends are still generally rising, keeping financials in the driver’s seat. On the resources side, BHP and Rio Tinto have been more mixed, occasionally losing steam, while Woodside Energy has been a bright spot, recently powering ahead. Overall, this is a concentrated bet on Australian financials and commodities, not a broad global mix.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Commonwealth Bank of Australia14.67%$192.15MAU$280.36B9.44%
64
Neutral
BHP Group Ltd13.02%$170.53MAU$255.89B52.57%
68
Neutral
Westpac Banking7.01%$91.84MAU$134.83B46.11%
69
Neutral
National Australia Bank Limited6.50%$85.07MAU$126.76B50.54%
64
Neutral
ANZ Group Holdings5.54%$72.56MAU$108.26B34.57%
70
Outperform
Wesfarmers Limited4.20%$55.01MAU$82.77B10.71%
68
Neutral
Macquarie Group Limited3.66%$47.87MAU$73.81B13.52%
56
Neutral
CSL3.50%$45.85MAU$68.32B-35.96%
75
Outperform
Woodside Energy Group3.46%$45.28MAU$66.56B49.08%
71
Outperform
Rio Tinto Limited2.87%$37.54MAU$227.74B53.09%
78
Outperform

EWA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
28.45
Negative
100DMA
27.20
Positive
200DMA
26.72
Positive
Market Momentum
MACD
-0.36
Positive
RSI
46.24
Neutral
STOCH
21.64
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For EWA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 28.16, equal to the 50-day MA of 28.45, and equal to the 200-day MA of 26.72, indicating a neutral trend. The MACD of -0.36 indicates Positive momentum. The RSI at 46.24 is Neutral, neither overbought nor oversold. The STOCH value of 21.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWA.

EWA Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.32B0.50%
66
Neutral
$7.14B0.61%
65
Neutral
$6.53B0.59%
59
Neutral
$6.06B0.48%
69
Neutral
$5.99B0.19%
66
Neutral
$88.45M0.09%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EWA
iShares MSCI Australia ETF
27.76
5.25
23.32%
INDA
iShares MSCI India ETF
MCHI
iShares MSCI China ETF
DXJ
WisdomTree Japan Hedged Equity Fund
BBAX
JPMorgan BetaBuilders Developed Asia ex-Japan ETF
FLAU
Franklin FTSE Australia ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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