France remains a focal point in media coverage after the eurozone’s second-largest economy changed over to a new president. Despite all of the country’s issues, its ETF remains one of the strongest performers with exposure in the region; however, investors may want to look past its promising dividends.
The iShares MSCI France Index Fund (NYSEArca: EWQ) looks solid, as it managed to return 12.12 percent during the first quarter, and holds an annual dividend yield of 3.54 percent, but recent developments in the eurozone as well as France’s long-term problems are holding it back, according an article on Zacks.
Adding to concerns is that France’s issues show signs of being long term. The country has to overcome a large budget deficit, record-high levels of unemployment, and French banks have high exposure to a number of troubled economies in Europe, the article said.
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