About EZA ETF
Overview:
The iShares by BlackRock South Africa ETF (EZA) has a large tech tilt compared to the benchmark and invests in South Africa and is managed by BlackRock that has a total AUM of $6.28T.
EZA is an exchange-traded fund incorporated in the USA in Feb 2003.
About the Fund Manager:
Founded in 1988, Blackrock is the largest asset manager in the world managing $6.28T. BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries. Due to its power and the sheer size and scope of its financial assets and activities, BlackRock has been called the world's largest shadow bank.
Investment Strategy:
The ETF seeks to track the investment results of an index composed of a broad range of companies in South Africa.
Sector:
EZA has invested in Consumer Cyclical (26%), Financials (26%), Consumer Non-Cyclical (9%), Energy (8%), and Real Estate (7%).
Geography:
EZA has invested in South Africa (94%), United Kingdom (5%), and Luxembourg (1%).
Recommended for:
Growth
EZA captures the South African total equity space with a market cap-weighted basket that holds about half as many firms as the segment benchmark. It is tilted towards large cap but nevertheless provides neutral sector exposure.
According to ETFdb.com, "For investors seeking greater exposure to the South African market, EZA is one of the only 'pure play' option available."
Additional Information:
1.
Fund Factsheet
2.
Is The South Africa ETF Worth The Risk? (EZA)
3.
Investing in Frontier Markets: Top African ETFs (AFK, EZA)
How did we identify this ETF:
A complete pool of 2100+ ETFs are screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R - squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the inhouse research / quant analysts team. It trades well in both small and large sizes, and robust volume keeps average spreads fair. Large premiums and discounts don't indicate poor liquidity; instead, they just highlight the mismatch in trading hours between fund shares and underlying stocks. Those looking to trade blocks can expect low transaction costs too. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.
