ETF Talk: Investing in Iberian Ambitions with the iShares MSCI Spain ETF (EWP)

The iShares MSCI Spain ETF (EWP) offers investors a streamlined way to gain exposure to the Spanish equity market.

Designed to track the performance of the MSCI Spain 25/50 Index, this exchange-traded fund (ETF) aims to mirror the results of Spain’s largest and most influential companies. It’s an ideal choice for those who believe in Spain’s economic potential and want diversified access to its corporate champions through a single investment vehicle.

EWP’s portfolio is thoughtfully constructed, focusing on large and mid-sized companies that define Spain’s economic landscape. Using a market capitalization-weighted strategy, the ETF ensures that larger, well-established firms have a proportionately greater influence on performance. This approach offers investors a clear reflection of Spain’s market dynamics.

Key names in EWP’s portfolio showcase the country’s economic diversity. Banking giants such as Banco Santander and BBVA bring financial sector strength to the table, while renewable energy leader Iberdrola highlights Spain’s commitment to sustainability. The fashion powerhouse Industria de Diseño Textil, known for its Zara brand, underscores Spain’s cultural and economic influence on global retail. Additionally, telecommunications player Telefónica rounds out the mix with its vital role in connecting Spain’s industries and citizens.

The fund has shown impressive recent performance. Over the past month, EWP has risen 10.23%, and in the last three months, it has posted a solid gain of about 21.79%. Year to date, the ETF has delivered a more robust return of approximately 39.63%. These figures suggest a promising trajectory, likely driven by positive economic indicators in Spain and strong performance by some of its top companies.

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To better understand the fund’s trajectory, let’s look at the one-year chart here of EWP.

Chart courtesy of www.stockcharts.com

As you can see, the fund has been on a tear since the beginning of the year, breaking above both its short-term, 50-day moving average and its longer-term, 200-day moving average on route to a new 52-week high.

Recent performance figures, including a year-to-date return of over 39%, suggest that EWP is capitalizing on favorable market conditions and the resilience of its top holdings. For investors with a bullish outlook on Spain or a desire to diversify internationally, EWP represents an attractive investment opportunity.

The iShares MSCI Spain ETF (EWP) could be a compelling option for investors seeking targeted exposure to Spain’s economic growth and market leaders. Its diverse portfolio, spanning sectors like finance, energy, retail and telecommunications, provides a well-rounded view of the Spanish economy. With its market-capitalization weighting, EWP effectively mirrors the performance of Spain’s key companies, offering a convenient and efficient way to invest in the region.

Note: investors should always do their due diligence before adding any stock, fund, or ETF to one’s portfolio.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

Jim Woods

Jim Woods is a 20-plus-year veteran of the markets with varied experience as a broker, hedge fund trader, financial writer, author and newsletter editor. Jim is the editor of Forecasts & Strategies, Tactical Trader, TNT Trader, Five Star Trader, Bullseye Stock Trader, and The Deep Woods. His books include co-authoring, “Billion Dollar Green: Profit from the Eco Revolution,” and “The Wealth Shield: How to Invest and Protect Your Money from Another Stock Market Crash, Financial Crisis or Global Economic Collapse.” He’s also ghostwritten many books and articles, as well as edited content for some of the investment industry’s biggest luminaries. His articles have appeared on many leading financial websites, including StockInvestor.com, InvestorPlace.com, Main Street Investor, MarketWatch, Street Authority, Human Events and many others. Jim formerly worked with Investor’s Business Daily founder William J. O’Neil, helping to author training courses in the CANSLIM stock-picking methodology. The independent firm TipRanks rates Jim the No. 3 financial blogger in the world (out of more than 6,000). TipRanks calculates that, since 2012, he's made 361 successful recommendations out of 499 total, earning a success rate of 72% and a +15.3% average return per recommendation. He is known in professional and personal circles as “The Renaissance Man,” because his expertise includes such varied fields as composing and performing music; Western horsemanship, combat marksmanship, martial arts, auto racing and bodybuilding. Jim holds a BA in philosophy from the University of California, Los Angeles, and is a former U.S. Army paratrooper. A self-described “radical for capitalism,” he celebrates the virtue of making money from his Southern California horse ranch.