As Europe Wilts, Don't Eat These BUNS (EWU, EWN, EWP)

April 26, 2012

 

Investors seeking funds in the developed market may want to avoid Belgium, the U.K., the Netherlands and Spain, as growing concern for the eurozone drags single-country ETFs focused on these equities down, according to an article on Benzinga.

The article highlights the following funds and explains how recent economic developments are reflected in the suffering of their ETFs:

  • iShares MSCI Belgium Investable Market Index Fund (NYSEArca: EWK): Political problems and credit downgrades put Belgium in harm’s way for investors.
  • iShares MSCI United Kingdom Index Fund (NYSEArca: EWU): Recently reported as entering a double-dip recession, and heavy exposure to financials isn’t helping this fund.
  • iShares MSCI Netherlands Investable Market Index Fund (NYSEArca: EWN): Fell 6.3 percent in the last month and the country is engaged in political turmoil, creating uncertainty in the market.
  • iShares MSCI Spain Index Fund (NYSEArca: EWP): Has a dividend yield of 10 percent because of risks, such as the need for public funds to bolster Spain’s banks and its surging borrowing costs.

 

For more information on the funds listed, visit Benzinga.com.

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