iShares MSCI New Zealand ETF (ENZL)

Overview

The iShares MSCI New Zealand ETF (ENZL) seeks to track the investment results of the MSCI New Zealand Investable Market Index, providing exposure to publicly traded companies in New Zealand. It focuses on the overall New Zealand equity market, offering investors a way to participate in the country's economy through a diversified portfolio of stocks. The ETF employs a passive investment strategy, aiming to replicate the index's performance.

Reputation and Reliability

iShares is a well-established and reputable ETF provider with a long track record of managing a wide range of ETFs.

Management Expertise

iShares benefits from BlackRock's extensive asset management expertise and resources.

Goal

The investment goal of the iShares MSCI New Zealand ETF is to closely track the investment results of the MSCI New Zealand Investable Market Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive investment strategy, tracking the MSCI New Zealand Investable Market Index.

Composition The ETF primarily holds stocks of publicly traded companies in New Zealand.

Market Share: The iShares MSCI New Zealand ETF is the only US-listed ETF providing focused exposure to the New Zealand equity market, effectively holding 100% market share in this niche.

Total Net Assets (AUM): 46640000

Key Competitors

Competitive Landscape

ENZL has no direct US-listed competitors focusing solely on the New Zealand equity market. Its primary competitive consideration is direct investment in New Zealand stocks or global/Asia-Pacific ex-US ETFs with small allocations to New Zealand. ENZL offers a cost-effective, diversified, and liquid way to access New Zealand equities, which is an advantage. A disadvantage is that it lacks flexibility compared to direct stock picking.

Historical Performance: Historical performance data is available from iShares and financial data providers. [2023-12-31]: 11.49% [2022-12-31]: -20.67% [2021-12-31]: 9.78% [2020-12-31]: 20.47% [2019-12-31]: 23.29%

Benchmark Comparison: The ETF's performance is closely compared to the MSCI New Zealand Investable Market Index. Tracking error is typically small.

Expense Ratio: 0.49

Average Trading Volume

The ETF exhibits moderate liquidity with an average daily trading volume, allowing for relatively easy buying and selling of shares.

Bid-Ask Spread

The bid-ask spread is usually competitive, but could widen in periods of low trading volume, increasing the cost of trading.

Market Environment Factors

Economic conditions in New Zealand, global trade dynamics, interest rate policies, and commodity prices can affect the ETF's performance.

Growth Trajectory

The ETF's growth is tied to the overall performance of the New Zealand equity market. Changes to strategy and holdings are minimal given its passive nature.

Competitive Edge

iShares MSCI New Zealand ETF benefits from being the sole US-listed ETF offering dedicated exposure to the New Zealand equity market. This first-mover advantage has allowed it to establish a loyal investor base. Its competitive advantage is further bolstered by BlackRock's brand recognition and extensive distribution network, giving it a distinct edge over potential new entrants. It offers diversification, liquidity and is relatively inexpensive to hold compared to direct investment.

Volatility

The ETF's volatility is tied to the volatility of the New Zealand equity market, and can be influenced by global market sentiment.

Market Risk

Specific risks include fluctuations in the New Zealand dollar, political instability in New Zealand, and industry-specific risks associated with the companies held in the index.

Ideal Investor Profile

The ideal investor is looking for diversified exposure to the New Zealand equity market. It is suitable for investors seeking international diversification or those with specific interest in the New Zealand economy.

Market Risk

The ETF is suitable for long-term investors seeking passive exposure to the New Zealand equity market.

The iShares MSCI New Zealand ETF offers focused exposure to the New Zealand equity market. As the sole US-listed ETF with this specific focus, it has a unique market position. It aims to mirror the performance of the MSCI New Zealand Investable Market Index through a passive investment strategy. Investors can use it as a tool for international diversification or to express a specific view on the New Zealand economy. The ETF's performance is closely tied to the economic health and market dynamics of New Zealand.

Data Sources:

• iShares website
• MSCI website
• Financial data providers

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Past performance is not indicative of future results. Investments in ETFs are subject to risk, including the possible loss of principal.