Learn About Investing With German ETFs

Germany, Berlin, view to upper part of Reichstag building with two German flags
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There are quite a few reasons to invest in Germany: to gain exposure to German markets, hedge German investments, or even diversify a portfolio. However, unless you have a specific German company or commodity to target, a German ETF may be the way to go instead.

With a German ETF, you can gain access to German markets without having to corner the market on individual German company stocks. Nor do you have to battle a German index to fill your basket at certain prices. With an ETF, you can track a German index or gain access to small-cap companies in the country with just one transaction.

By adding a German ETF to your investing strategy you can not only complete your investing goals but at the same time gain all of the advantages of ETFs, like saving money on both your commissions and your tax return.

So if you think your German-Investing strategy should include ETFs (or ETNs), then you definitely want to at least explore these German funds (and notes). From small-cap to bond to leveraged ETFs, there’s probably a fund that fits your portfolio. However, make sure you research each asset and conduct your due diligence before you make any trade. And always consult your broker or a financial professional if necessary.

And to help you with that research, here is a list of the potential German ETFs on the market as of today.

EWG - iShares MSCI Germany Index ETF

EWG tracks the MSCI Germany Index, which seeks to replicate the performance of the German equity market. The companies in the index and fund are either located in Germany or conduct the majority of their business in the country. Some examples of the top holdings include Siemens (SIE), BASF (BAS) and Sap (SAP).

GGOV - ProShares German Sovereign/Sub-Sovereign ETF

This German bond fund tracks the Markit iBoxx EUR Germany Sovereign & Sub-Sovereign Liquid Index with the goal of tracking the performance of fixed rate debt securities of both the Federal Republic of Germany and German local governments and entities or agencies guaranteed by various German governments issuers.

BUNL - PowerShares DB German Bund Futures ETN

BUNL tracks the DB USD Bund Futures Index, which is intended to measure the performance of a long position in Euro-Bund Futures.

BUNT - PowerShares DB 3x German Bund Futures ETN

BUNT also tracks the DB USD Bund Futures Index but seeks a 3x daily leveraged return on the index as opposed to the regular targeted return like BUNL

  • FGM - First Trust Germany AlphaDex Fund
  • DBGR - DB X-trackers MSCI Germany Hedged Equity Fund
  • DXGE - WisdomTree Germany Hedged Equity Fund
  • HEWG - iShares Currency Hedged MSCI Germany ETF
  • DAX -  Recon Capital DAX Germany ETF

Also, there are some ETFs that include German investments as part of their holdings. The following Europe ETFs target various regions of the continent which may include Germany.

  • ADRU - BLDRS Europe 100 ADR Index ETF
  • DFE - WisdomTree Europe SmallCap Dividend ETF
  • EPV - UltraShort MSCI Europe ProShares ETF
  • ESR - iShares MSCI Emerging Markets Eastern Europe Index ETF
  • EUFN - iShares MSCI Europe Financials Sector Index Fund
  • FEP - First Trust Europe AlphaDex Fund
  • GUR - SPDR S&P Emerging Europe ETF
  • IEV - iShares S&P Europe 350 Index ETF
  • IFEU - iShares FTSE EPRA/NAREIT Developed Europe Index ETF
  • UPV - Ultra MSCI Europe ETF
  • VGK - Vanguard European ETF