Germany’s gross domestic product (GDP) shrank 0.2% in the third quarter of 2018. This represented the first quarterly contraction for the German economy since 2015. German GDP experienced 0.5% growth in the second quarter.
Germany’s Council of Economic Experts lowered their growth forecast for the year to 1.6% compared to the 2.3% that was forecast last year. Experts say that this drop is merely a blip and that Germany’s overall economic health is good. The drop was largely due to weakness in the auto sector, which faces challenges due to rising trade tensions, and poor results in retail.
With the German economy on pace for a bounce back in the fourth quarter, investors may want to consider dipping into a Germany-focused ETF next month. The First Trust Germany AlphaDex ETF (NASDAQ:FGM) seeks investment results that track the NASDAQ AlphaDex Germany Index. This index is heavy on consumer discretionary, industrials, and real estate, which all boast at least 15% sector weighting.
The ETF has plunged 20.8% in 2018 as of close on November 28. Shares have dipped 18% over the past three months, which have been very turbulent for stocks worldwide. Some of its top holdings include Porsche Automobil Holding SE, Deutsche Lufthansa AG, and Volkswagen AG.
Investors who want to bet on the strongest economy in Europe roaring back in Q4 2018 and in 2019 should consider scooping up this ETF on the cheap today.
