Best and Worst International ETFs During Downtrend
If you believe the financial crisis in Europe will continue it will be in your best interest to avoid the European ETFs. The hardest hit single-country ETFs since the S&P 500 high on 4/23 are located in Western Europe.
The iShares Italy ETF (NYSE: EWI) and iShares Spain ETF (NYSE: EWP) have both lost over 20% of their value and are officially in bear market territory. They are also close to hitting fresh 52-week lows. The other laggards include the iShares Austria ETF (NYSE: EWO) and the iShares France ETF (NYSE: EWQ), down 18.7% and 16.8%, respectively.
On the flip side, there are a few glimmers of hope in emerging markets. The iShares Malaysia ETF (NYSE: EWM) is only down 3.3% and the iShares Chile ETF (NYSE: ECH) has lost 4.6%.
Of the developed nations, the two that are outperforming the US are resource-heavy Canada, iShares Canada ETF (NYSE: EWC) is down 6.8% and the iShares Japan ETF (NYSE: EWJ) lost 6.9%. Keep in mind the SPDR S&P 500 ETF (NYSE: SPY) is down 7.7% during this timeframe.
In reality there has been nowhere to hide lately and besides a few emerging market countries, the US has been the best bet for investors.
