EWG VS HEWG: A Comprehensive Comparison of ETFs
4 min read
By Beqa Bumbeishvili, ETF Insider

EWG VS HEWG: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) play a pivotal role in the investment landscape, offering diversified exposure to different sectors and regions. In this article, we will conduct an in-depth comparison between two prominent ETFs: EWG (iShares MSCI Germany ETF) and HEWG (iShares Currency Hedged MSCI Germany ETF). We will explore various dimensions, including their tickers, full names, issuers, sectors, top holdings, capitalization, strategies, tracking methods, and exposure.

EWG VS HEWG: Overview

EWG and HEWG are two ETFs that provide distinct approaches to investing in the German market. While EWG aims to track the performance of German equities, HEWG focuses on the same objective but with the additional feature of currency hedging. This fundamental difference impacts the risk and return profiles of these ETFs, which we will dissect further in the subsequent sections.

EWG VS HEWG: Sectors and Top Holdings

The EWG ETF primarily encompasses a broad spectrum of German companies, ranging from various sectors such as automotive, manufacturing, finance, and technology. HEWG, on the other hand, also invests in German equities but with the strategic twist of currency hedging. Investors seeking exposure to specific German sectors might favor EWG, while those looking to mitigate currency risk could lean towards HEWG.

EWG overlap EWG VS HEWG: A Comprehensive Comparison of ETFsEWG overlap EWG VS HEWG: A Comprehensive Comparison of ETFs

EWG VS HEWG: Capitalization and Strategy

EWG boasts a significant asset under management (AUM), reflecting its popularity among investors seeking exposure to the German equity market. HEWG's strategy of currency hedging aims to mitigate the impact of currency fluctuations on returns, making it an attractive option for investors concerned about foreign exchange risk. The differences in capitalization and strategy between these ETFs offer investors distinct avenues for capital allocation.

EWG VS HEWG: Tracking Methods and Exposure

EWG tracks the performance of the MSCI Germany Index, allowing investors to gain exposure to a wide array of German stocks. HEWG follows a similar approach, but with the added benefit of currency hedging. Currency hedging seeks to reduce the impact of fluctuations in the euro-to-dollar exchange rate on investors' returns. Understanding the tracking methods and exposure mechanisms aids investors in making informed decisions based on their risk tolerance and investment objectives.

Conclusion

EWG and HEWG are valuable tools for investors seeking exposure to the German equity market, each catering to different risk preferences and investment goals. To gain deeper insights into their holdings, correlations, overlaps, and other critical aspects, ETF Insider provides a comprehensive solution. With its user-friendly app, ETF Insider empowers investors to make well-informed decisions about these and other financial instruments.

Disclaimer: This article does not provide any investment advisory services.

Sources:

iShares. (n.d.). iShares MSCI Germany ETF (EWG). Retrieved from [URL]
iShares. (n.d.). iShares Currency Hedged MSCI Germany ETF (HEWG). Retrieved from [URL]

EWG ETF issuer
EWG ETF official page

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