EWI ETF

iShares MSCI Italy ETF offers investors exposure to the Italian stock market through a diverse mix of mid and large-cap companies. The EWI ETF's portfolio includes industry giants like UniCredit, ENEL, Ferrari, Intesa Sanpaolo, and Stellantis, providing broad exposure to various sectors. EWI's sector composition highlights strengths in Financials, Consumer Discretionary, Utilities, Energy, Industrials, and Healthcare, showcasing Italy's economic diversity.

EWI tracks MSCI Italy Index with lackluster returns. EWI has high exposure to cyclical sectors, but low exposure to technology sector. EWI's fund price has a high correlation to ECB's rate policy.

Key indicators suggest the iShares MSCI Italy ETF's surge near 45% year-over-year might continue. Regional risk premiums are among the best in Europe. The EWI ETF has a value-centric investment approach, which could benefit in a "higher for longer" interest rate environment.

The Eurozone economy has encountered a setback, with the first-quarter GDP showing an unexpected contraction. As economists express their pessimism, concerns rise over the region's future performance.

Italy's latest production data raised alarm bells. While some concern is warranted, resilience elsewhere in the economy, most notably services, provides some welcome offset. Despite this year's outperformance, the iShares MSCI Italy ETF continues to trade at undemanding valuations.