German equity ETFs are among the best-performing funds so far this year, beating their US counterparts, as investors bet the country’s manufacturers will escape President Donald Trump’s threatened tariffs largely unscathed.
The largest fund tracking the country’s stocks, the $939.4 million iShares MSCI Germany ETF (EWG) has gained 10% so far this year through Friday, Feb. 7, while the $73.3 million Global X DAX Germany ETF (DAX) has added 11%. Both are beating US benchmark ETFs like the $38.6 billion SPDR Dow Jones Industrial Average ETF Trust (DIA) , which has risen 5.2% this year and the $630.1 billion SPDR S&P 500 ETF Trust (SPY), which has moved 3.5% higher.
Both funds jumped despite Trump’s vow to add duties to imported steel. Germany is the world’s seventh-largest steel producer, according to Brussels-based World Steel Organization. While Trump has said he plans 25% tariffs on imported steel and aluminum, the country’s largest steelmaker, Thyssenkrupp AG, said it expects “limited” effects from the duties.
“The main market for Thyssenkrupp’s steel is Europe,” German news agency Deutsche Welle reported. The company exports a “negligible” amount of steel to the U.S. and most of it is “high-quality products with a good market position,” the company said, according to the Deutsche Welle report.
Shares in a range of German companies are rising this year, including 19% gains in both Commerzbank AG and Rheinmetall AG and Seimens Energy AG’s 14% increase.
Source: etf.com Markets Monitor. Data delayed
By contrast, the largest US companies are lagging so far this year, after two years of surging prices. Apple Inc. (AAPL) has dropped 8.8% this year, Nvidia Corp. (NVDA) is little changed this year, and Microsoft Corp. (MSFT) is down 2.2%.
The threat of a 25% tariff has also not damped enthusiasm for the largest Mexican ETF, the $1.4 billion iShares MSCI Mexico ETF (EWW) which has gained 8.3% year to date. Meanwhile, the $2.76 billion iShares MSCI Canada ETF (EWC) has added 3.7%.
