iShares MSCI New Zealand Capped (ENZL)
A tiny economy closely linked to Australia and Asia, New Zealand equities have held up rather well considering regional sluggishness.
New Zealand’s GDP topped out at a annualized pace of 3.4% in the post-crisis period and has been slowly softening ever since. Forecasts put growth at a tepid 2.4% for all of 2013.
A relatively strong currency isn’t helping exports, but the country is recovering from a drought and consumption is picking up, which points to stronger growth ahead.
The iShares MSCI New Zealand Capped ETF (ENZL) has managed to scrape out a 13.6% gain for the year-to-date. Top holdings include Fletcher Building (FRCEF), Telecom Corporation of New Zealand (NZTCY) and Auckland International Airport.