EWI VS HEWI: A Comprehensive Comparison of ETFs
Exchange-Traded Funds (ETFs) offer a convenient way for investors to diversify their portfolios across international markets. In this article, we will explore the intricacies of two ETFs focused on the Italian market: EWI (iShares MSCI Italy ETF) and HEWI (iShares Currency Hedged MSCI Italy ETF). We will discuss various aspects such as tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.
EWI > HEWI: Overview
EWI and HEWI both offer investors exposure to the Italian market, albeit with different approaches. EWI concentrates on providing unhedged exposure to large and mid-sized companies in Italy, while HEWI does the same but hedges against the Euro to offer currency-neutral returns. Understanding these nuances can help investors choose the right investment vehicle.
EWI > HEWI: Issuers and Investment Strategies
Both ETFs are issued by iShares, which is known for its broad range of ETF offerings. EWI aims to track the MSCI Italy Index, offering a straightforward way to invest in the Italian market. On the other hand, HEWI tracks the same index but hedges against the Euro, making it more suitable for those concerned about currency risks. The issuer’s approach to these ETFs reflects distinct investment strategies that cater to different risk profiles.
EWI overlap EWI VS HEWI: A Comprehensive Comparison of ETFs
EWI > HEWI: Sector Focus and Top Holdings
EWI is primarily invested in Financials, Consumer Discretionary, and Industrials, with top holdings in companies like ENI and UniCredit. HEWI, while also focusing on similar sectors, offers a currency-hedged exposure, making it slightly less volatile in terms of currency fluctuations. Knowing the sectors and top holdings is crucial for investors aiming for specific market exposures.
EWI > HEWI: Capitalization and Assets Under Management
EWI generally has a larger Asset Under Management (AUM), reflecting its popularity among investors looking for direct exposure to the Italian market. HEWI, due to its currency-hedging feature, has a smaller but growing AUM. Understanding the AUM and capitalization of these ETFs can give investors insights into their relative stability and liquidity.
EWI > HEWI: Tracking and Exposure
Both ETFs aim to track the performance of the MSCI Italy Index, albeit with a key difference. EWI offers direct exposure to the index, while HEWI provides exposure adjusted for currency risk. This distinction is essential for investors who are sensitive to the impact of currency fluctuations on their international investments.
Conclusion
Both EWI and HEWI offer specialized approaches to investing in the Italian market. Whether you prefer direct exposure with EWI or a currency-hedged approach with HEWI, your choice will depend on your investment objectives and risk tolerance. For those interested in digging deeper into holdings, correlations, and overlaps, ETF Insider is an invaluable resource. The user-friendly app provides detailed insights into these and other financial instruments.
Disclaimer: This article does not provide any investment advisory services.
EWI ETF issuer
EWI ETF official page