
EWA: Australian Financials May Struggle With A Flattening Yield Curve
The iShares MSCI Australia ETF is heavily weighted toward financials (42%) and materials (24%), primarily Commonwealth Bank and BHP. EWA's financial sector faces headwinds from a flattening yield curve, rising funding costs, and highly leveraged Australian households amid rate hikes. Materials exposure is mixed: copper benefits from electrification trends, but iron ore faces demand risks from China's tepid growth and geopolitical tensions.


















