Checkout The Chart: New Zealand ETF

The ETF Professor is pleased to introduce a new weekly feature to Benzinga's ETF coverage. “Checkout The Chart” will take a look at an ETF or ETN that has a surprisingly strong (or weak) chart and we've got an interesting fund to start with. The first “Checkout The Chart” candidate is the iShares MSCI New Zealand Investable Market Index Fund ENZL, an ETF we just highlighted as one of a group of five unheralded developed market ETFs (April 18). ENZL made its debut in September 2010 to a decent amount of fanfare as it was the first New Zealand-specific ETF. It's still the only one and while the ETF has attracted over $99 million in assets under management, no one would accuse ENZL of being the most popular guy at the ETF party. As we all know, profitability and popularity don't always share a correlation in the financial markets and ENZL is a testament to that statement. Checkout the chart. Seriously. For as strong as the chart is, it's almost equally as tragic that this stellar performance by ENZL in the past two months has gone nearly unnoticed. That might be the result of only New Zealand stock, New Zealand Telecom NZT trading in the U.S. It could be the result of New Zealand falling through the developed market cracks. It's hard to tell. What is clear is that New Zealand is the anti-PIGS. The country has embraced major austerity measures, pledging to cut spending over the next several years with aim of returning to a budget surplus by 2015. What's even more impressive about ENZL's chart is that the ETF has held up well in the face of some swift declines for commodities recently. While New Zealand doesn't specialize in any one commodity in particular, the country is the epitome of a commodities play from an investment standpoint. Excluding materials, which account for 24.5% of ENZL's weight, the ETF is actually quite conservative with telecom, utilities and industrials all figuring prominently in the mix. ENZL's performance is made all the more impressive when considering New Zealand endured a massive earthquake in March and has since turned in a performance that would make some Japan ETFs envious. That means there is a rebuilding angle at play, but that has long since been priced into this ETF. With New Zealand still teetering on the brink of another recession, there is some risk with ENZL. That said, checkout the chart. A pullback below $31 or a breakout above $33 could be compelling buy points.