Australian Large-Cap ETF: A Comprehensive Guide

The iShares MSCI Australia ETF (EWA) is a large-cap ETF with a $1.5 billion market size that tracks the Australian equity market. It covers around 50 stocks and is backed by Blackrock. EWA is set to complete its third year since launch. The ETF is designed to replicate the performance of the MSCI Australia Index, which is a widely followed benchmark for Australian equities.

The iShares MSCI Australia ETF (EWA) is a large-cap ETF that tracks the Australian equity market, with a market size of approximately $1.5 billion. Launched in 2023, EWA has been designed to replicate the performance of the MSCI Australia Index, a widely followed benchmark for Australian equities. The fund seeks to track the investment results of the MSCI Australia Index, which includes large- and mid-capitalization segments of the Australian equity market.

EWA is backed by BlackRock, a leading global investment management firm. The fund is non-diversified and invests at least 80% of its assets in the component securities of its underlying index or investments with similar economic characteristics. This focus allows EWA to provide exposure to a concentrated portfolio of Australian equities.

As of July 2, 2025, EWA has shown strong performance. The fund's previous close was $24.46, with a YTD return of 2.40% and a 1-year return of 15.17%. The expense ratio is 0.50%, which is considered good by U.S. News standards [1].

In terms of sector weightings, Financial Services is the most significant sector, accounting for 37.01% of the fund's assets. This is followed by Healthcare (10.36%), Basic Materials (20.77%), and Consumer Cyclical (6.15%). The geographic breakdown shows that 98.8% of the fund's assets are invested in Australasia, with the remainder in the United States [1].

The fund's performance has been influenced by various factors, including the overall health of the Australian economy and the performance of individual sectors within the Australian equity market. For example, the technology sector, which includes companies like Apple, Amazon, and Tesla, has shown strong performance recently, driving the rise in the S&P 500 and influencing the performance of EWA [2].

However, EWA has also faced regulatory scrutiny and market volatility. The Australian Securities and Investments Commission (ASIC) is reviewing the listing market application of Cboe Australia, which could impact the fund's performance. Additionally, market volatility has led to a cautious start to the trading day for the ASX 200 futures, which slipped 27 points or 0.30% [2].

In conclusion, the iShares MSCI Australia ETF (EWA) is a well-diversified fund that provides exposure to the large- and mid-capitalization segments of the Australian equity market. While the fund has shown strong performance, investors should be aware of the potential risks and regulatory challenges that could impact its performance. As always, it is essential to conduct thorough research and consider your risk tolerance before investing.

References:
[1] https://money.usnews.com/funds/etfs/miscellaneous-region/ishares-msci-australia-etf/ewa
[2] https://colitco.com/asx-tech-regulation-defence-market-update/