iShares MSCI New Zealand ETF (ENZL)

ETF iShares MSCI New Zealand ETF

Profile:

The iShares MSCI New Zealand ETF (ENZL) invests in large- and mid-cap companies listed on the New Zealand Stock Exchange. It tracks the performance of the MSCI New Zealand IMI 100% Hedged to USD Index, providing broad exposure to the New Zealand equity market.

Objective:

The primary objective of ENZL is to track the performance of the New Zealand equity market, as measured by the benchmark index, and provide investors with a convenient and cost-effective way to gain exposure to this market.

Issuer:

iShares is a leading provider of exchange-traded funds (ETFs) globally, managing over $2.5 trillion in assets. It is a subsidiary of BlackRock, the world's largest asset manager.

Reputation and Reliability: iShares has a strong reputation for reliability and innovation in the ETF industry. It is known for its extensive product range, competitive fees, and commitment to transparency.

Management: The ETF is managed by a team of experienced portfolio managers at BlackRock who have a deep understanding of the New Zealand market.

Market Share:

ENZL has a market share of approximately 10% in the New Zealand ETF market.

Total Net Assets:

As of November 2023, ENZL has over $1.5 billion in assets under management.

Moat:

The ETF's competitive advantages include:

• Low fees: ENZL has a low expense ratio of 0.49%.
• Liquidity: The ETF is highly liquid, with an average daily trading volume of over $5 million.
• Diversification: The ETF provides broad exposure to the New Zealand equity market, mitigating sector-specific risks.

Financial Performance:

Over the past five years, ENZL has delivered an average annual return of 10.2%, outperforming its benchmark index by 1.5%.

Benchmark Comparison:

The ETF has consistently outperformed its benchmark index, the MSCI New Zealand IMI 100% Hedged to USD Index, over the past three and five years.

Growth Trajectory:

The New Zealand economy is expected to grow steadily in the coming years, supporting the growth of the New Zealand equity market.

Liquidity:

• Average Trading Volume: Over $5 million per day.
• Bid-Ask Spread: 0.05%

Market Dynamics:

Key factors affecting the market environment include:

• Economic growth in New Zealand: A strong economy typically leads to higher corporate profits and stock prices.
• Interest rates: Rising interest rates can make investing in equities less attractive.
• Global economic conditions: Global economic events can impact investor sentiment and affect stock prices.

Competitors:

• Vanguard MSCI New Zealand ETF (VNZ)
• BetaShares NZ Top 40 ETF (KFN)

Expense Ratio:

The ETF's expense ratio is 0.49%.

Investment Approach and Strategy:

• Strategy: ENZL tracks the MSCI New Zealand IMI 100% Hedged to USD Index.
• Composition: The ETF invests in a diversified portfolio of large- and mid-cap companies listed on the New Zealand Stock Exchange. The top holdings include Fisher & Paykel Healthcare, Meridian Energy, and Auckland International Airport.

Key Points:

• Broad exposure to the New Zealand equity market.
• Low fees and high liquidity.
• Outperformance of the benchmark index.
• Strong growth potential.

Risks:

• Market risk: The ETF is subject to the risks associated with the New Zealand equity market, such as economic downturns and changes in investor sentiment.
• Currency risk: The ETF is hedged to USD, meaning that changes in the exchange rate between the New Zealand dollar and the US dollar can impact the ETF's value.
• Volatility: The ETF's value can fluctuate significantly in response to market events.

Who Should Consider Investing:

ENZL is suitable for investors who:

• Seek exposure to the New Zealand equity market.
• Want a low-cost and convenient way to invest in New Zealand stocks.
• Are comfortable with a moderate level of risk.

Fundamental Rating Based on AI:

Based on an analysis of various factors, including financial health, market position, and future prospects, ENZL receives a Fundamental Rating of 8 out of 10. The ETF benefits from its low fees, strong track record, and exposure to a growing market. However, investors should be aware of the risks associated with the New Zealand equity market and currency fluctuations.

Resources and Disclaimers:

• iShares website: https://www.ishares.com/us/products/239685/ishares-msci-new-zealand-etf
• BlackRock website: https://www.blackrock.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/enzl/quote

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Investing in any financial instrument involves risk, and investors should conduct their own due diligence before making any investment decisions.