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As the first quarter of 2023 is coming to an end, now is an opportune time to assess the stock market performance of different countries.

The U.S. stock market, as represented by the SPDR S&amp;P 500 ETF Trust (ARCA: SPY), ranks only 22nd in the top performing country ETFs list, posting a quarterly total return of about 6%.

5 Best And Worst Performing Country ETFs For Q1 2023: A Defaulting Country&#39;s Stock Market Beats S&amp;P 500

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How Brexit Affects The Ireland ETF

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Emerald Isle Mints Green For Investors

As the first quarter of 2023 is coming to an end, now is an opportune time to assess the stock market performance of different countries.
The U.S. stock market, as represented by the SPDR S&amp;P 500 ETF Trust (ARCA: SPY), ranks only 22nd in the top performing country ETFs&nbsp;list, posting&nbsp;a quarterly total return of about 6%.
Let&#39;s take a look at the quarterly performance of the best and worst performing country ETFs worldwide.
Also Read: <a href="https://www.benzinga.com/money/best-etfs" target="_blank">Best Exchange Traded Funds</a>
5 Worst-Performing&nbsp;Country ETFs&nbsp;In Q1 2023
5) iShares MSCI Israel ETF (ARCA: EIS)
<ul>
<li>The major stock market ETF in Israel&nbsp;has fallen 4% in the quarter ending March 2023, ranking as the fifth-worst country ETF so far this year.&nbsp;</li>
<li>The worst contributor to the index performance was Bezeq The Israel Telecommunication ADR&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/bzqiy#OTC">BZQIY</a>), which fell 30% year to date.</li>
</ul>
4) iShares MSCI UAE ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/uae#NASDAQ">UAE</a>)
<ul>
<li>The iShares MSCI UAE ETF, which seeks to track an index composed of UAE equities, is down 6.7% in Q1 2023 and still trades 25% lower than a year ago.</li>
<li>The worst contributor to the performance of the UAE ETF was First Abu Dhabi Bank PJSC, down 21% year-to-date, which is traded on&nbsp;the domestic exchange.</li>
</ul>
3) iShares MSCI INDIA&nbsp;ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/inda#BATS">INDA</a>)
<ul>
<li>The iShares MSCI India&nbsp;ETF&nbsp;slipped 7.2% year to date, ranking as the third-worst country ETF.</li>
<li>Reliance Industries Ltd. (OTC: <a class="ticker" href="https://www.benzinga.com/stock/rlniy#OTC">RLNIY</a>) was the fund&#39;s poorest contributor, down 13% year to date while accounting for around 10% of its holdings.</li>
</ul>
2) iShares MSCI Turkey ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tur#NASDAQ">TUR</a>)
<ul>
<li>The iShares MSCI Turkey ETF was the second worst-performing country ETF in Q1 2023, delivering a negative return of 12%. But, the ETF is 63% higher compared to a year ago, mainly due to the currency effect.</li>
<li>The main contributor to the negative performance of the index was Hektas Ticaret T.A.S., which is only traded in the Istanbul Stock Exchange and is down 23% in the quarter.</li>
</ul>
1)&nbsp;VanEck Egypt Index ETF (ARCA: EGPT)
<ul>
<li>The VanEck Egypt Index ETF was the worst-performing country ETF in Q1 2023, returning a negative 16%. The Egyptian stock market is also down 18% from a year ago.</li>
<li>EFG-Hermes Holding SAE GDR&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/efgzf#OTC">EFGZF</a>) was the main negative contributor to the overall performance, falling 30% year to date.</li>
<li><img alt="" src="https://www.benzinga.com/files/u1363475/egpt_2023-03-30_20-36-02_a4471.png" style="height:500px; width:100%" /></li>
</ul>
5 Best-Performing&nbsp;Country ETFs&nbsp;In Q1 2023
5)&nbsp;iShares MSCI Germany ETF (ARCA: EWG)
<ul>
<li>The iShares MSCI Germany ETF returned 13% in the quarter, ranking as the fifth best-performing country ETF worldwide.</li>
<li>The main contributor to the positive performance of the fund was SAP SE (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sap#NYSE">SAP</a>), which has risen 19% this quarter.</li>
</ul>
4)&nbsp;iShares MSCI Spain ETF (ARCA: EWP)
<ul>
<li>A fund that tracks the performance of most-capitalized Spanish equities posted a quarterly return of 15.2%.</li>
<li>The main contributors of the performance were the two largest banks in Spain: Banco Santander&nbsp;SA&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/san#NYSE">SAN</a>) up 20.5% year-to-date, and Banco Bilbao Vizcaya Argentaria, SA&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/bbva#NYSE">BBVA</a>), up 15%.</li>
</ul>
3) Global X MSCI Argentina ETF (ARCA: ARGT)
<ul>
<li>The Global X MSCI Argentina ETF increased by 17.9% in the quarter, thus outperforming significantly compared to SPY, which is likely to have surprised many market analysts given Argentina&#39;s chronic debt crisis.</li>
<li>The best-performing Argentinian stock was MercadoLibre&nbsp;Inc&nbsp;(NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/meli#NASDAQ">MELI</a>), also known as the &quot;Amazon of South America,&quot;&nbsp;which rose 50% in the quarter and alone added 11 percentage points to the overall ETF performance.</li>
</ul>
2)&nbsp;iShares MSCI Ireland ETF (ARCA: EIRL)
<ul>
<li>The Irish equity market is the second-best performer among global country ETFs, and the first in the European continent, posting an 18% performance in the quarter.</li>
<li>The betting company Flutter Entertainment ADR&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/pdypy#OTC">PDYPY</a>) was the main contributor to the index performance, after rising 27% year to date.</li>
</ul>
1) iShares MSCI Mexico ETF (ARCA: EWW)
<ul>
<li>The iShares MSCI Mexico ETF has been the best performing country ETF in 2023, returning 18.2% in the first quarter of the year.</li>
<li>Given its large weight (14%) in the portfolio, American Movil&nbsp;SAB&nbsp;de CV ADR&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amx#NYSE">AMX</a>) was the major contributor to the Mexican stock market&#39;s success, after rising 9% year to date.</li>
</ul>
<img alt="" src="https://www.benzinga.com/files/u1363475/ewg_2023-03-30_20-38-38_781ef.png" style="height:500px; width:100%" />
Read Next: <a href="https://www.benzinga.com/markets/cryptocurrency/23/03/31518782/its-not-tesla-meta-or-nvidia-the-best-performing-large-cap-stock-in-2023-is-a-crypto-play" target="_blank">It&#39;s Not Tesla, Meta Or Nvidia &mdash; The Best Performing Large-Cap Stock In 2023 Is A Crypto Play</a>
Photo: Shutterstock

5 Best And Worst Performing Country ETFs For Q1 2023: A Defaulting Country's Stock Market Beats S&P 500

<a href="https://www.bloomberg.com/news/articles/2023-02-27/uk-eu-seal-post-brexit-deal-on-northern-ireland-trade" title="https://www.bloomberg.com/news/articles/2023-02-27/uk-eu-seal-post-brexit-deal-on-northern-ireland-trade">https://www.bloomberg.com/news/articles/2023-02-27/uk-eu-seal-post-brexit-deal-on-northern-ireland-trade</a>

'UK, EU Seal Post-Brexit Deal On Northern Ireland Trade' - Bloomberg News

Ireland Has Registered 3 Cases Of Indian COVID-19 Variant, Two Associated With Travel

Irish Health Department Confirms Ireland's First Case of Coronavirus; Says Case is Associated With Travel From Affected Area in N. Italy

Irish PM Says Believes There Will be a Deal

The iShares MSCI Ireland ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/eirl#NYSE">EIRL</a>), the lone U.S.-listed exchange traded fund dedicated to Irish equities, is up 6.34 percent year-to-date, an impressive performance considering the Brexit backdrop.
With the U.K.&#39;s departure from the European Union looming, some analysts and market observers are assessing the potential impact of Brexit on Irish equities.
<h3>What Happened</h3>
EIRL, which turns nine years old in May, follows the MSCI All Ireland Capped Index and holds 27 stocks. There are concerns that if the U.K. withdraws from the EU without trade agreements in place, including one with Ireland, geopolitical relationships could be damaged.
Prime Minister Teresa May&#39;s recently defeated Brexit agreement included a trade accord with Ireland, but that deal is no longer in play.
&ldquo;But since that framework is no longer on the table, customs checks will be implemented between the Irish neighbors <a href="https://www.cnbc.com/video/2019/01/15/wider-chance-of-extending-article-50-after-brexit-vote-analyst-says.html">when Britain leaves the E.U. on March 29</a> &mdash; unless May and British lawmakers delay that deadline or decide on an alternative withdrawal strategy,&rdquo; <a href="https://www.cnbc.com/2019/01/17/former-irish-pm-no-deal-brexit-will-mean-isolation.html">according to CNBC</a>.
<h3>Why It&#39;s Important</h3>
As is to be expected, some Irish sectors are more exposed to Brexit than others and there has been a sharp divergence between the least and most exposed sectors.
&ldquo;A recovery in output enjoyed by firms most exposed to Brexit in 2017 largely failed to continue last year, with the gap in performance between the &#39;most exposed&#39; and &#39;least exposed&#39; sectors becoming much larger, especially in late-2018,&rdquo; IHS Markit said&nbsp;<a href="https://ihsmarkit.com/research-analysis/brexit-exposed-sectors-in-ireland-suffer-as-brexit-approaches.html">in a recent note</a>.
EIRL&#39;s two largest sector weights are almost evenly split between cyclical and defensive groups. The fund&#39;s largest sector allocation is materials at almost 28 percent followed by defensive consumer staples at 26.61 percent.
&ldquo;Although greater than normal, the recent underperformance of the &#39;most exposed&#39; sectors has not been as great as the period immediately following the UK&#39;s 2016 referendum,&rdquo; said Markit. &ldquo;This could be due to efforts by companies to prepare for Brexit, such as by reducing any reliance on UK business.&rdquo;
<h3>What&#39;s Next</h3>
While Ireland is generally seen as prepared for Brexit, investors may need some convincing regarding EIRL. After seeing outflows of $4.32 million last year, the Ireland ETF has not taken in any new assets this year.
&ldquo;The Irish government has released guidelines and undergone detailed preparations for Brexit. The state economic development agency focused on generating export sales (Enterprise Ireland) has a designated webpage for Irish firms seeking information on Brexit,&rdquo; according to Markit.
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Ireland's GDP Could Fall 7% with No-Brexit Deal

Exchange-traded funds providing exposure to European equities have been getting plenty of attention this year. National elections earlier this year in the Netherlands and France, and in Germany in a few days, were among the events turning investors&#39; attention across the Atlantic.
Italy&#39;s efforts at banking reform and political volatility there coupled with Greece&#39;s ongoing austerity efforts and Catalonia&#39;s independence vote in Spain are other events putting Europe stocks and ETFs in the spotlight. All the while, things have been fairly quiet in Ireland.
Markets like quiet. Up nearly 22 percent year to date, the iShares MSCI Ireland Capped ETF (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>) confirms as much. EIRL, the only ETF dedicated to Irish equities, hit a record high Thursday.
<h3>Impressive Economic Growth</h3>
Ireland&#39;s steady economic growth is serving as the foundation for EIRL&#39;s impressive year-to-date performance.
&ldquo;The Irish economy grew by 1.4 percent in the second quarter of 2017, rebounding from a 2.6 percent contraction in the previous quarter,&rdquo; <a href="https://www.irishtimes.com/business/economy/irish-economy-grew-1-4-in-second-quarter-1.3222227">reported The Irish Times</a>. &ldquo;Despite the volatility from quarter to quarter, the latest national accounts show the Irish economy is growing at a healthy 5.8 percent in annual terms.&rdquo;
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/17/09/10083636/ahead-of-german-election-a-small-etf-surges">A Small ETF For A Big European Economy</a>
Ireland&#39;s equity market is small compared to what investors find in the U.K. or major eurozone economies, such as Germany and France. EIRL reflects that diminutive stature, holding just 25 stocks. The ETF&#39;s top two holdings combine for over 37 percent of its weight.
<h3>More Good News</h3>
Additional data points indicate the Irish economy is on firm footing, which could be a sign of more upside to come for EIRL.
&ldquo;Abstracting from the forces that have distorted the national accounts, the Irish economy seems to be doing reasonably well,&rdquo; <a href="http://www.iii.co.uk/alliance-news/1505739534021755800-3/ireland-economy-likely-to-grow-quickly-capital-economics">according to Capital Economics</a>. &ldquo;The upshot is that we continue to expect Ireland&#39;s economy to grow fairly quickly.&rdquo;&nbsp;
EIRL allocates over half its combined weight to the materials and consumer staples sectors. Industrial and consumer discretionary names combine for over 26 percent. The ETF has a three-year standard deviation of 15.1 percent.
Related Link: <a href="http:// https://www.benzinga.com/trading-ideas/long-ideas/17/09/10083631/brazil-etf-steady-as-petrobras-to-stay-in-government-hands">Good News For Brazil ETFs</a>

Among single-country exchange traded funds tracking European economies, the iShares MSCI Ireland Capped ETF (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>) often goes overlooked. That&#39;s particularly true this year with investors instead focusing on the<a href="https://www.benzinga.com/trading-ideas/long-ideas/17/01/8903231/netherlands-etf-not-yet-reflecting-political-risks"> many Eurozone nations</a> where potentially market-moving national elections are scheduled to take place.
Still, the lone ETF dedicated to Irish equities is up almost 6.4 percent year-to-date, indicating the ETF is dealing with post-Brexit life with aplomb.
The stunning Brexit decision only contributed to an already rough environment for EIRL and Irish stocks, which isn&#39;t surprising given Ireland&#39;s vital trade relationship with Great Britain. Potentially boding well for EIRL and Irish stocks going forward is a recent spate of solid economic data out of the emerald isle.
EIRL, which is home to $64.1 million in assets under management, tracks the MSCI All Ireland Capped Index and holds 25 stocks. Some economic data points suggest Ireland&#39;s economy remains on firm ground.
&ldquo;However, the final months of 2016 and the start of 2017 have seen rates of expansion return to the strong levels seen prior to the UK&rsquo;s referendum,&rdquo; Markit said <a href="http://www.markit.com/Commentary/Get/13032017-Economics-Irish-economy-recovers-from-last-year-s-Brexit-vote-shock-but-worries-remain">in a recent note</a>. &ldquo;New orders rose substantially in each of the manufacturing, services and construction sectors in February, with the rate of growth only fractionally down on January&rsquo;s one-year high. This fed through to further increases in output across all of the three sectors, and encouraged firms to continue to take on extra staff.&rdquo;&nbsp;
While it&#39;s logical to expect that a single-country ETF will perform well ahead of or in conjunction with the underlying country&#39;s economy, the cyclical nature of EIRL&#39;s lineup underscores the point that the ETF should do well as Ireland thrives and likewise be potentially vulnerable if the Irish economy sags. EIRL allocates over 41 percent of its combined weight to cyclical materials and industrial stocks.
Data indicate EIRL&#39;s manufacturing exposure is a theme investors should closely monitor going forward.
&ldquo;Manufacturers are also less bullish around investment decisions going forward, given current levels of uncertainty,&rdquo; said Markit. &ldquo;Manufacturing sentiment regarding both employment and capital expenditure is at a four-year low, while a net balance of just +8% of manufacturers expect to raise R&amp;D spending over the coming 12 months. Meanwhile, service providers are more upbeat regarding staffing levels and capex than they were in October.&rdquo;

Risks And Rewards With The Ireland ETF

As recently as last year, the iShares MSCI Ireland Capped ETF (iShares MSCI Irld Cp Invstb Mrkt Indx Fd (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>)) was a leader among single-country Europe exchange-traded funds, posting a 2015 gain of nearly 23 percent. That was by far the best showing among the ETFs tracking PIIGS economies.
<h3>A Different Scéilín</h3>
This year is a different story, as nearly all Europe ETFs are struggling. EIRL, the lone Ireland ETF has not been immune to those woes as highlighted by a year-to-date loss of 5.7 percent. Among the PIIGS ETFs, EIRL is still easily outpacing its Greece and Italy counterparts.
The stunning Brexit decision in June only contributed to an already rough environment for EIRL and Irish stocks, which is not surprising given Ireland&#39;s vital trade relationship with Great Britain. Potentially boding well for EIRL and Irish stocks going forward is a recent spate of solid economic data out of the emerald isle.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/09/8449710/south-korea-etf-sort-of-endures-samsung-slide">South Korea ETF Sort Of Endures Samsung Slide</a></bzrelatedlink>
&ldquo;Meanwhile, consumer spending also looks to have continued on an upward trajectory despite an initial hit to confidence following the surprise vote result. With the UK government set to wait until sometime in 2017 to trigger Article 50, the immediate impacts of the vote will likely dissipate over the rest of this year, but longer-term uncertainty remains,&rdquo; said Markit<a href="http://www.markit.com/Commentary/Get/12092016-Economics-Irish-economy-continues-to-grow-following-Brexit-vote-but-longer-term-uncertainty-remains"> in a recent note</a>.&nbsp;
<h3>Irish Resiliency</h3>
Although EIRL still labors below its pre-Brexit highs, the ETF has tacked nearly 17 percent since the Brexit decision was announced. Additional good news for the ETF comes in the form of its low allocation to financial services stocks, currently a plus when it comes <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/09/8444445/reconsidering-europe-etfs">to single-country Eurozone ETFs</a>.
EIRL allocates just 7.3 percent of its weight to bank stocks, making that the ETF&#39;s seventh-largest sector allocation.
&ldquo;After having eased to a near two-and-a-half year low in July, the rate of expansion in services business activity quickened fractionally in August. However, new orders rose at the weakest pace since early-2014 in a sign that companies may be operating in a more difficult environment for securing new work,&rdquo; added Markit. &ldquo;Construction, meanwhile, continued to record strong rises in activity and new business in August as the sector&rsquo;s recovery was sustained. A special one-off question added to the August survey indicated that most customers expect Brexit to have no impact on activity over the coming year.&rdquo;
EIRL is levered to those themes with a combined weight of over 37 percent to the materials and industrial sectors.
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Irish Eyes Could Smile Again For This ETF

Prior to the Brexit decision, the iShares MSCI Ireland Capped ETF (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>), the lone exchange traded fund dedicated to Irish equities, was struggling. Along comes the Brexit stunner and EIRL was among the many Europe single-country ETFs that sank more than 10 percent last Friday.

	Even after rebounding the past couple of sessions, EIRL is still saddled with a year-to-date loss of over 15 percent. However, if this week&#39;s market action is any indication, investors are quickly getting over the Brexit shock, a scenario that could be creating opportunity with ETFs tracking some of the sturdier European nations. Additionally, flows data suggest investors are using Brexit to scoop up some single-country Europe ETFs, <a href="http://www.benzinga.com/analyst-ratings/analyst-color/16/06/8164009/its-not-all-about-departures-from-europe-etfs">not sell these funds</a>.&nbsp;

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	Still, EIRL has the potential to be a good news/bad news play for investors. Geography indicates Ireland&#39;s economy has significant Brexit exposure.

	&ldquo;Ireland&#39;s economy is highly exposed to Brexit. According to the Central Statistics Office (CSO), the UK accounted for 12.6% of Ireland&#39;s total goods exports in January-April 2016, and 24% of total goods imports. The UK also accounted for 20% of total services exports in 2014. Total goods and services exports to the UK are equivalent to around 17% of GDP. There could be significant sector-specific fall out. For example, the UK accounts for 49% of Irish agricultural exports,&rdquo; said <a href="http:// https://www.fitchratings.com/site/pressrelease?id=1008098">Fitch Ratings</a>.

	As it pertains to EIRL, the ETF is really a two sector pony as materials and consumer staples combine for over 53 percent of the fund&#39;s weight. So it&#39;s possible one or both of those groups remain sturdy in the face of Brexit, which could allow EIRL to do the same. That&#39;s a stretch, but not impossible.

	EIRL allocates 12.5 percent of its weight to financial services, a group almost universally viewed as vulnerable in Brexit&#39;s wake. That is EIRL&#39;s fourth-largest sector exposure. EIRL has a three-year standard deviation of 15.5 percent.

	&ldquo;Our upgrade of Ireland to &#39;A&#39; from &#39;A-&#39; in February reflected the marked fall in government debt to 93.8% of GDP in 2015 from 120% in 2013 driven by strong and broad-based growth and fiscal consolidation. While negative, Brexit is unlikely to undermine the progress that Ireland has made in these areas. Fitch expects debt/GDP to fall in the medium term, helped in part by lower nominal interest rates,&rdquo; adds Fitch.

Short Ideas

Irish Eyes Aren't Smiling About Brexit

Last year, the iShares MSCI Ireland Capped ETF (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>) got the bulk of the positive attention afforded to exchange traded funds tracking the PIIGS economies and deservedly so. EIRL, the lone Ireland ETF, surged nearly 23 percent.

	None of the other four single-country ETFs tracking PIIGS nations were even in EIRL&#39;s ballpark in terms of 2015 performance. Actually, just one of those four managed to finish the year higher. That honor goes to the iShares MSCI Italy Capped ETF (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>), which climbed 3.1 percent last year. Now, some analysts think the Italian economy, the Eurozone&#39;s third-largest, is primed to continue recovering this year and that Italy could be a better bet than Spain.

	&quot;In the last quarter of 2015, ETFs with equity exposure to Spain saw $362m of consecutive outflows occur. This was while ETFs with equity exposure to Italy, despite a large outflow of $190m in December, had net inflows of $167m over the same period,&quot; said Markit <a href="http://www.markit.com/Commentary/Get/07012016-Equities-Fog-in-Spain-as-Italy-kicks-it-up-a-gear">in a recent note</a>. &quot;Investors who followed this rotation would have already benefited, even just two weeks into the year. While both regions have fallen along with global markets, Spanish equities have underperformed by 1.9% year to date compared to the Italian Index.&quot;

	Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/16/01/6137868/good-money-keeps-following-bad-with-oil-etfs">Good Money Keeps Following Bad With Oil ETFs</a>

	Inflows to Italy ETFs are noteworthy, but it must be noted EWI is far from a free lunch. In the seven-year period ending 2015, the largest Italy ETF rose on an annual basis just four times. EWI&#39;s <a href="https://www.ishares.com/us/products/239664/EWI">three-year standard deviation</a> of 20.4 percent means the Italy ETF is slightly more volatile than its Spain counterpart and nearly 500 basis points more volatile than the iShares MSCI Eurozone ETF (NSYE: EZU).

	Additionally, EWI is levered to changes in oil prices by way of its 11.7 percent weight to Eni SpA (NYSE: <a class="ticker" href="/stock/e#NYSE">E</a>), the ETF&#39;s second-largest holding. Overall, energy is EWI&#39;s third-largest sector allocation at 15 percent with financial services and utilities combining for over 56 percent of the fund&#39;s weight.

	For EWI&#39;s primary Spain rival, the iShares MSCI Spain Capped ETF (NYSE: <a class="ticker" href="/stock/ewp#NYSE">EWP</a>), a potential catalyst for upside exists: Short covering of Spanish stocks.

	&quot;Average short interest for constituents of the Spanish IBEX Index spiked higher during 2015, reaching a high of 3.3% and is currently hovering near 3.0%,&quot; according to Markit.

	EWP is down nearly 15 percent over the past year while EWI is higher by 2.1 percent over that period.

A Promising PIIGS ETF

First of all, I want to say that the purpose of this post is not to make predictions about the future, so if you&rsquo;re expecting a 12-month price target for the S&amp;P 500, you&rsquo;ll want to look elsewhere.

	Throughout this exercise I used the weight of evidence present in markets around the globe in order to identify some market themes that I think will occur throughout 2016. Lastly, I want to say that none of these market themes are set in stone. As a market participant, I&rsquo;m not here to be right/wrong, if/when the weight of evidence changes I&rsquo;ll adjust.

	Without further adieu, here are the nine market themes for 2016.

	1. Developed &gt; Emerging Markets

	Since the SPDR S&amp;P 500 ETF Trust (NYSEARCA:SPY) / iShares MSCI Emerging Markets Indx (ETF) (NYSEARCA:EEM) and Vanguard MSCI EAFE ETF (NYSEARCA:VEA) / Vanguard Emerging Markets Stock Index Fd (NYSEARCA:VWO) ratios bottomed in 2011, they&rsquo;ve been on a complete tear, representing the broad outperformance of stocks in developed markets over emerging markets. These ratios developed multi-year bases and the breakouts from them were quite explosive. Despite their aggressive rallies, there is little evidence that suggests they&rsquo;re ending anytime soon. There is evidence however, that their progress may be due for a bit of a pause in 2016.

	The SPY / EEM ratio is approaching the 38.2% retracement of the 2000-2010 decline, which also corresponds with prior support near 6.7. In addition, momentum has negatively diverged at the recent highs, which has preceded pullbacks or consolidation periods in the past. Structurally this uptrend looks great, but we may see some consolidation this year before it breaks out to new highs.

	Similar action is occuring in VEA / VWO as it approaches the highs it made in 2008. Despite the strong structural uptrend, momentum recently diverged as the ratio made new highs, suggesting a pause may be needed. Our structural target remains the 2008 highs, which also corresponds with the 161.8% extension of the 2014 correction. Despite this continued outperformance, I&rsquo;d expect to see some consolidation in this ratio before it makes new highs.

	2. Large-Caps To Outperform

	Over the past decade or so, the ratio of large caps stocks to small caps stocks (SPY / iShares Russell 2000 Index (ETF) (NYSEARCA:IWM), has been forming a major base and is starting to break out of it. If the ratio can clear 1.80, then 1.95 is the next big level of resistance. If this ratio can eventually get above 1.95 there is room for a lot of potential upside. I&rsquo;m going to continue to watch this chart throughout the year as I think this may be the start of a much larger / longer-term trend. And this could be one of the major market themes for this year and perhaps years to come.

	3. Commodities As a Group Will Continue To Slump

	This doesn&rsquo;t necessarily mean another big down year for the group, it could very well mean a flat year. Many of these markets in strong structural downtrends or trendless markets, meaning that time will be needed for them to reverse / sustainable uptrends to develop. That doesn&rsquo;t mean that there won&rsquo;t be counter-trend / mean reversion opportunities to take advantage of over the year, but it does mean that we shouldn&rsquo;t be expecting strong multi-year downtrends to reverse themselves in a relatively short period. Time heals all wounds, even in markets, but we have to be patient to allow sustainable trend reversals to take place.

	A good example of this is Crude Oil. Many commodity charts have been more or less crashing below downward sloping 200 day moving averages for years. Sure, some counter-trend opportunities presented themselves in 2015, but the structural trend is still in place and will take weeks / months / years for these trends to change.4. US Markets Will Continue To Frustrate On An Absolute Basis

	One of the emerging market themes of 2015 and likely 2016? A change in year doesn&rsquo;t do anything to change the fact that many of the Major U.S. Stock Market Indices and Sectors are riddled with flat 200 day moving averages. Until we see some consolidation in one direction or another to allow the slope of these moving averages to become decisively positive or negative, prices will likely stay stuck in a choppy range.

	Micro-Caps, Small-Caps, and Mid-Caps, as well as the Transports and other important measures of risk appetite are trading below downward sloping 200 day moving averages, so that may indicate that the other indexes will follow their deteriorating breadth and resolve to the downside. We could also see sector rotation drive market breadth and the indices to new highs; nobody knows. Regardless of how these ranges resolve, the underlying catalyst is going to be time. Time is needed for the long term moving average to begin sloping in one direction or another to support a sustainable trend.5. The Long End of The Curve May Finally Begin To Rise

	Now I know that everyone on the street has been expecting this to be one of the major market themes just about every year since the turn of the decade.. but I think market conditions are finally at a point that would support higher interest rates. Throughout 2015 we saw yields on the short end of the curve hit multi-year highs, but the long end of the curve was pretty much rangebound.

	This action may have seemed lackluster on the surface, but the consolidation toward the top of its recent range allowed for both the 200 week and day moving averages to flatten out and begin rising, which could support higher prices. The other positive is that we&rsquo;re retesting the downtrend line from the &rsquo;07 highs more and more frequently, and the more a level is tested, the higher likelihood it is to break. With momentum improving and the longer term moving averages sloping higher, prices may be able to stage a sustainable breakout, rather than a failed attempt like we&rsquo;ve seen over the past few years. The prospect of this market theme playing out is worthy of keeping on your radar.

	On a relative basis the Ten-Year Yield / S&amp;P 500 ratio reached a structural downside target at the 261.8% extension of the &rsquo;10 &ndash; &rsquo;11 rally earlier in the year, and has since broken above the downtrend line from the 2013 highs, as well as the 2012 and 2013 lows.

	The Ten-Year Yield remains rangebound between 2.20 and 2.40 and the resolution of that range should determine where it heads next, but I think the weight of evidence on an absolute and relative basis suggests that the likelihood of a breakout is higher than it has ever been in recent years.

	6. Utilities Catch a Bid

	After getting ahead of itself in early 2015, the Dow Jones Utility Average (INDEXDJX:DJU) spent the majority of the year consolidating above the uptrend line from the April 2009 lows, as well as the &rsquo;07 highs. This remains one of the few sectors above its primary uptrend line from the 2009 lows and momentum managed to stay in a bullish range throughout the duration of this correction.

	Additionally, on a relative basis, DJU / SPX continues to hold above multi-year lows and remains above the downtrend line from 2011.

	If price action can continue to improve on an absolute basis to allow the 200 day moving average to begin sloping higher, this market can go substantially higher in 2016. What would confirm this thesis is a breakout above resistance at 610, which would open the door to new all-time highs. And that makes the Utilities one of the more interesting market themes to watch in 2016.

	7. Ireland Will Be a Leading Equity Market

	Perhaps this is one of the market themes that that sounds a bit obscure, but it makes sense when looking around the world for relative strength leaders. Only 8 of the 43 Foreign Equity market ETFs I track were up on the year in 2015, with iShares MSCI Irld CP Invstb Mrkt Indx Fd&nbsp;(NYSEARCA:EIRL) leading the charge, gaining 21%.

	Fortunately, much of those gains took place within the first half of the year, which allowed this market to consolidate near all-time highs before breaking out in the last two weeks of 2015. From a structural perspective the next price target is at the 161.8% extension of the 2014 decline, which represents 15% upside from current prices. The best part about this is the simplicity of the risk management in that we only want to be long this market above the top of the 2015 range at 41.

	There are short-term concerns about a failed breakout on the daily chart given the momentum divergence and bullish consolidation pattern resolving to the downside, but from a structural perspective, I think it&rsquo;s clear that the uptrend and relative strength in EIRL remains intact.

	8. NZD/USD Will Have a Tough Year

	As I reviewed all of the global markets I follow, I noticed that NZD/USD looks like one of the most well defined risk/reward setups in the world right now. Prices have been in a structural downtrend for 1 1/2 years now and recently mean reverted back toward the downtrend line from the 2014 highs. From a structural perspective, this looks like a perfect spot to get short versus.

	On the daily chart it&rsquo;s even more clear why this market is a fade, as prices run into a confluence of resistance at prior support, the downtrend line from the &rsquo;14 highs, and the downward sloping 200 day moving average. Combine that with a negative momentum divergence, and I think the weight of evidence clearly suggests fading this market aggressively.

	There will be tactical downside targets along the way, but the structural target for NZD/USD remains near the &rsquo;09 lows at the 161.8% extension of the 2010-2011 rally. Will this be one of the currency market themes during 2016? Time will tell.

	9. The Grains (Wheat, Corn, Soybeans, and Oats) Due For More Downside

	One common market theme across these ag commodities is that they all experienced some consolidation / mean reversion throughout 2015 to allow sentiment to reset, but now look like they&rsquo;re ready to continue lower within their structural downtrends.

	Oats failed to get back above broken support near 280 in the middle of 2015 and have been moving lower ever since. With momentum in a bearish range and prices below downward sloping 200 week and day moving averages, the bias remains to the downside. The next structural downside target lies at the 161.8% extension of the 2013-2014 rally, which corresponds nicely with prior support / resistance near 175-180.

	Soybeans spent a good portion of 2015 trying to regain broken support and clear the downtrend line from the 2014 highs by getting above 925. Unfortunately, prices failed to do that and remain below downward sloping 200 week and day moving averages with momentum in a bearish range. As long as prices are below 925, they remain vulnerable and open to testing their next structural downside target near 665, which represents the 161.8% extension of the 2011-2012 rally, as well as prior support / resistance.

	Wheat has tested the 460 level multiple times during 2015, with each successive rally being weaker and weaker. With prices below their downward sloping 200 week and day moving averages and, momentum in a bearish range, Wheat looks like it will test long term support / resistance in the low 400s at some point.

	Corn experienced some mean reversion in mid-2015 after breaking above the downtrend line that&rsquo;s been intact since 2013, but quickly stalled above prior support and put in a failed breakout in July. With prices below their downward sloping 200 week and day moving averages, and momentum in a bearish range, it looks like Corn will likely test long term support / resistance in the low 300s in 2016.

	As I stated at the top of the post, I&rsquo;m not in the prediction business. These are simply some of the market themes that I&rsquo;ll be looking to take advantage of in 2016 should they play out as the weight of evidence suggests they might.

	As always, if you have any questions feel free to reach out and I&rsquo;ll get back to you as soon as I can.

	This was originally shared on <a href="http://brunicharting.com/">BruniCharting</a>

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Neither the Italian economy, the eurozone&#39;s third largest, nor the country&#39;s equity market have had the pizzazz of the country&#39;s famous automakers and fashion in recent years, but there are signs that Italy could be awakening from a long slumber.

	That could be enough to bring investors to the iShares MSCI Italy Index (ETF) (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>), the largest Italy ETF trading in New York.
 As it is, EWI is up 5.3 percent this year, making it the second-best performer among the single-country ETFs tracking PIIGS economies.
Only the iShares MSCI Irld Cp Invstb Mrkt Indx Fd (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>) <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5857050/playing-with-piigs-etfs-that-is">has outperformed EWI</a>.
<h3>Is A Recovery Ahead For EWI?</h3>
However, EWI&#39;s road to full-fledged recovery is unlikely to be bump free. The ETF&#39;s three-year standard deviation of 20.1 percent confirms as much.
By comparison, the MSCI Emerging Markets Index has a three-year standard deviation of <a href="http://www.ishares.com/us/products/239637/EEM?referrer=tickerSearch">just 14.1 percent</a>.
 Additionally, a legitimate Italian economic miracle is likely to be more of a slow slog than an overnight miracle.

	&ldquo;The upturn in Italy was in some ways different from what took place in neighboring countries,&rdquo; said <a href="https://www.globalcreditportal.com/ratingsdirect/Login.do">Standard &amp; Poor&#39;s</a> in a new research note.
&ldquo;First, it&#39;s been weaker: Real GDP rose 1.2 percent in the eurozone as a whole in the first half of the year (0.7 percent for Italy). Second, the upswing in the eurozone was primarily consumer driven.&rdquo;
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5857050/playing-with-piigs-etfs-that-is">Playing With PIIGS...ETFs That Is</a></bzrelatedlink>
<h3>Consumer-Driven Recovery And Its Effect On Italy</h3>
In theory, a consumer-driven recovery should have benefited Italy and EWI more as the ETF has an almost 11 percent weight to discretionary stocks.
 However, bad loans are hampering Italian banks and the financial services sector is a significant portion of the Italian equity market&#39;s market value. The sector is 40.1 percent of EWI&#39;s weight, or about two and a half times the ETF&#39;s second-largest sector allocation, utilities.
	&ldquo;The Italian bank sector remains vulnerable and is not in an ideal position to support private investment,&rdquo; said Standard &amp; Poor&#39;s. &ldquo;All categories included &ndash; bad debt, substandard, past due and restructured &ndash; non-performing loans (NPLs) have tripled since 2007 to reach a historical high of 24 percent of GDP in June 2014, or 16.8 percent of total loans.&rdquo;
	Said another way, as S&amp;P noted, Italy&#39;s NPL problem is four times as dire as the European average. Making matters worse is that eight in 10 NPLs are corporate loans, which dampens banks&#39; ability to increase non-financial sector loans.
<h3>Increased Profitability On The Horizon?</h3>
Investors willing to bet on increased profitability for Italian banks, a concept that could take a while to materialize, and an ongoing improvement in the country&#39;s industrial sector (11.7 percent of EWI&#39;s weight), while making a wager against the euro can consider the iShares Currency Hedged MSCI Italy ETF (NYSE: <a class="ticker" href="/stock/hewi#NYSE">HEWI</a>).

	HEWI, which debuted June, is essentially EWI with a euro hedge overlay. The ETF has already attracted nearly $94 million in assets under management, making it one of the most successful ETFs to debut this year.

	Another idea is the Deutsche X-trackers MSCI Southern Europe Hedged Equity (NYSE: DBSE), also a currency hedged ETF.
	DBSE, <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5778012/deutsche-awm-continues-currency-hedged-drive-with-six-new-etf">which debuted last month</a>, is the closest fund on the market today to a true PIIGS ETF.
 Looking a little closer, DBSE is essentially a combination Spain/Italy ETF, as the countries combine for 95 percent of the fund&#39;s weight; however, that country mix could prove advantageous going forward.
Image Credit: <a href="https://pixabay.com/en/city-centre-street-milan-italy-705879/">Public Domain</a>

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There are still pockets of weakness among the PIIGS (Portugal, Ireland, Italy, Greece and Spain), the countries previously and some still known as Europe&#39;s problem children, but investors should not outright shun opportunity with the PIIGS.
<h3>These Little PIIGS Went To Market</h3>
Entering Tuesday, just two of the five PIIGS' single-country exchange-traded funds &ndash; the iShares MSCI Irld Cp Invstb Mrkt Indx Fd (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>) and the iShares MSCI Italy Index (ETF) (NYSE: <a class="ticker" href="/stock/ewi#NYSE">EWI</a>) &ndash; were higher on a year-to-date basis.
 Not surprisingly, the worst performer of the quintet has been the Global X FTSE Greece 20 ETF (Global X Funds (NYSE: <a class="ticker" href="/stock/grek#NYSE">GREK</a>)), which among other issues, has recently dealt with <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5834482/greece-suffers-another-market-classification-demotion">another market classification demotion</a> and another national election.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/09/5819084/this-europe-etf-has-gotten-popular-in-a-hurry">This Europe ETF Has Gotten Popular In A Hurry</a></bzrelatedlink>
Although it is down more than 10 percent year-to-date, the iShares MSCI Spain Capped ETF (NYSE: <a class="ticker" href="/stock/ewp#NYSE">EWP</a>) is seen as one of the strongest individual PIIGS' ETFs alongside EIRL, the Ireland ETF.

	&ldquo;As for the Spanish ETF, it is valued at around 1.35 times book value, 20 basis points below the global average. The dividend yield of this ETF stands at around 3.8 percent, compared to the global benchmark average of 3.16 percent, according to Morningstar,&rdquo; reported <a href="http://www.barrons.com/articles/time-to-buy-europes-piigs-u-s-yield-plays-1442874467">Barron&#39;s</a>.
The European Central Bank&#39;s rendition of quantitative easing, unveiled earlier this year, has reportedly been a boon for <a href="http://www.bloomberg.com/news/articles/2015-09-16/stocks-and-bonds-losing-to-real-estate-in-draghi-s-world-of-qe">commercial real estate deals</a> in Portugal and Spain.
 Should that trend continue, it could and should benefit EWP, an ETF that allocates nearly 42 percent of its weight to financial services stocks. That is more than two and a half times larger than EWP&#39;s second-largest sector weight.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5788162/going-greek-unique-etfs-for-accessing-greek-stocks">Going Greek: Unique ETFs For Accessing Greek Stocks</a></bzrelatedlink>
	Spanish stocks are also inexpensive. EWP&#39;s P/E ratio is just below 16, implying a discount to the S&amp;P 500 and the EURO STOXX 50 Index. Compelling valuations are one reason why investors have pumped $256.6 million into EWP this year.

	Over the past two and a half months, yields on the benchmark Italian government bond have fallen about 65 basis points, as some investors have warmed to the notion that lower oil prices and the weak euro will bolster Italian stocks while lifting the eurozone&#39;s third-largest economy out of a recession. EWI, the largest Italy ETF trading in New York, entered Tuesday up 9.2 percent this year.

	&ldquo;Gross domestic product is seen expanding 0.9 percent in 2015, up from 0.7 percent projected by the government in April, and then in 2016 more than the 1.3 percent previously forecast,&rdquo; <a href="http://www.bloomberg.com/news/articles/2015-09-17/renzi-bets-italy-budget-plan-will-overcome-europe-growth-doubts">Bloomberg</a> reported, citing Prime Minister Matteo Renzi.

	Investors have added $274.1 million to EWI this year. Only GREK has seen larger inflows among the PIIGS single-country ETFs.
<h3>Another ETF Option</h3>
For the investor that does not want to make a single-country bet on the PIIGS, the new Deutsche X-trackers MSCI Southern Europe Hedged Equity (NYSE: DBSE) is an interesting option.
 DBSE, <a href="http://www.benzinga.com/trading-ideas/long-ideas/15/08/5778012/deutsche-awm-continues-currency-hedged-drive-with-six-new-etf">which debuted last month</a>, is the closest fund on the market today to a true PIIGS ETF.
Looking a little closer, DBSE is essentially a combination Spain/Italy ETF, as the countries combine for 95 percent of the fund&#39;s weight; however, that country mix could prove advantageous going forward.
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The European Commission <a href="http://www.wsj.com/articles/eu-lifts-eurozone-growth-forecast-1430816514">raised its economic forecast</a> for 2015 on Tuesday in light of improving financials and lower oil prices.
 EU economists increased their GDP estimate from 1.3 percent to 1.5 percent for the 19-nation eurozone, saying that the region's fiscal reform has gotten most nations' economies back on track and that spending is expected to rise due to savings at the pump.
Some investors believe that the rosy outlook will fade once the economic tailwinds die down, but others are looking to the bloc as a wise investment choice.
<h3>Up-And-Comers</h3>

Economies like Spain and Ireland could be attractive bets for investors looking to capitalize on an eurozone recovery. Both nations suffered through the financial crisis and appear to be coming out on top with improving economic indicators and reforms well underway.
Tuesday's EU forecast pointed to Spain and Ireland as the fastest growing economies in the eurozone, making ETFs like iShares MSCI Spain Capped ETF (NYSE: <a class="ticker" href="/stock/ewp#NYSE">EWP</a>) and iShares MSCI Irld Cp Invstb Mrkt Indx Fd (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>) attractive options.
<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/markets/eurozone/15/05/5479292/checking-in-on-the-german-economy">Checking In On The German Economy</a></bzrelatedlink>
<h3>Stability</h3>

Germany has been another popular place for traders looking to expose themselves to Europe's recovery to invest in, as the nation has remained resilient even through the worst of the bloc's financial crisis.
 The <a href="http://www.benzinga.com/topic/ecb">European Central Bank</a>'s quantitative easing is expected to boost Germany's markets, but the nation isn't expected to undergo any major reforms, making it a safer choice for cautious investors.
<h3>A Risky Play</h3>

Greece is the riskiest eurozone pick, as the nation's financial trouble remains an unresolved issue for the bloc.
While the nation is expected to run out of money relatively soon, most are expecting Athens to receive some type of help from the EU to keep it from defaulting.
 Greece's Global X Funds (NYSE: <a class="ticker" href="/stock/grek#NYSE">GREK</a>) has seen massive losses over the past weeks as the nation's bailout talks drag on, but some believe investors' concern over Greece is overdone and see the fund's low valuation as an opportunity.
&nbsp; 
Image Credit: <a href="http://pixabay.com/en/europe-flag-star-blue-european-633475/">Public Domain</a>

Investors Tentatively Look To Europe

The European Union is made up of 28 individual countries, nearly all but a handful of which are represented through single country exchange-traded funds.

	Analyzing the individual components of this group can better understand the areas of strength or weakness and how they match up in terms of total contribution. Many of the names at the top and bottom of this list offer surprising insight into the European economic sphere.

	As a whole, the European theme has been a strong one this year in comparison to U.S. stocks. The Vanguard FTSE Europe ETF (NYSE: <a class="ticker" href="/stock/vgk#NYSE">VGK</a>) is a well-known benchmark of this region and has gained over 7 percent so far in 2015. That return easily bests the 2.5 percent advance in the SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>).

	Breaking down the individual components, the top performing country this year has been the iShares MSCI Denmark Capped ETF (EDEN), which has jumped 17 percent. Denmark is considered a medium-sized component of the European Union and currently represents just 2.6 percent of VGK.
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<div id="file-preview">
		<a href="https://www.benzinga.com/imce?app=nomatter%7Cimceload%40imceInline.load#" title=""><img alt="eden.png" height="284" src="https://www.benzinga.com/files/u79448/eden.png" width="460" /></a></div>
</div>

	Nevertheless, this ETF has continued to show strong relative momentum and just recently broke out to new 52-week highs. EDEN tracks 40 companies domiciled in or having a significant portion of their business in Denmark and has $62 million in total assets.

	The second-best performing country in Europe this year has been the iShares MSCI Ireland Capped ETF (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>). This Ireland stock index has gained more than 12 percent, yet only represents 0.40 percent of the country allocation in VGK.

	On the flip side, the worst performing country has been the&nbsp;Global X FTSE Greece 20 ETF (NYSE: <a class="ticker" href="/stock/grek#NYSE">GREK</a>), which has fallen over 26 percent this year. Greece has been plagued by a tremendous debt burden and consistent economic woes that threaten to overwhelm this tiny nation.
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<div id="file-preview">
		<a href="https://www.benzinga.com/imce?app=nomatter%7Cimceload%40imceInline.load#" title=""><img alt="grek.png" height="284" src="https://www.benzinga.com/files/u79448/grek.png" width="460" /></a></div>
</div>

	Nevertheless, ETF investors have poured nearly $175 million into GREK so far this year in an obvious attempt to capitalize on a return to Greek prosperity. This nation represents just 0.1 percent of the total country allocation within VGK as a result of shrinking market cap woes.

	Greece is the only single country European ETF with negative returns this year, although the iShares MSCI Poland Capped ETF (NYSE: <a class="ticker" href="/stock/epol#NYSE">EPOL</a>) is the next worst performer on the list with a timid 4 percent gain.

	It will be interesting to see if Greece can pull itself out of the cellar and race to catch up with its strongly trending peers for the remainder of 2015.

EDEN

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Best And Worst Europe ETFs So Far In 2015

It is mid-March and that means two things: March Madness and St. Patrick&#39;s Day. The latter is a reason to dress up in green, drink beer and eat some bangers and mash.
<h3>
	Ireland: Regaining</h3>

	There wasn&#39;t much celebrating in Ireland a few years ago as the country was dealing with major issues related to the financial crisis. But today, the member of the PIIGS group is now sporting one of the best economies in Europe. Over the next few years, economists expect Ireland&#39;s GDP to grow by 3 to 4 percent, well above the less than 2 percent expected for Europe as a whole.

	<bzrelatedlink>Related Link: <a href="http://www.benzinga.com/pressreleases/15/03/p5327061/st-patricks-day-promotion-15-calling-bonus-on-keepcalling-com">St. Patrick&#39;s Day Promotion: 15% Calling Bonus On KeepCalling.com</a></bzrelatedlink>
<h3>
	iShares MSCI Ireland Capped ETF</h3>

	Americans looking to invest in the continued rebound in the Emerald Isle can turn to the iShares MSCI Irld Cp Invstb Mrkt Indx Fd (NYSE: <a class="ticker" href="/stock/eirl#NYSE">EIRL</a>). The ETF is made up of 25 Irish stocks that are fairly diverse throughout the materials, consumer staples, industrials and financial sectors.

	While the ETF may be diverse as far as sectors, it is heavily weighted in the top holdings, with CRH PLC (ADR) (NYSE: <a class="ticker" href="/stock/crh#NYSE">CRH</a>) making up 21 percent of the portfolio.
<h3>
	A Closer Look</h3>

	The building materials company has been on a roller coaster ride lately, and EIRL has followed a similar pattern. The other top holdings include Kerry Group PLC (ADR) (OTC: <a class="ticker" href="/stock/kryay#OTC">KRYAY</a>) and Bank of Ireland (ADR) (OTC: <a class="ticker" href="/stock/ireby#OTC">IREBY</a>) making up 22 percent combined.

	After a huge rally from 2012 to early 2014, the ETF took a breather and pulled back through most of 2014, as it lagged many of its peers. Over the last few months, the ETF has been forming a base and broke the downtrend line in early 2015.

	From a pure technical view, it appears EIRL is ready to start a new longer-term uptrend. And if not, at least go enjoy a pint of Guinness.
Image credit: <a href="http://www.flickr.com/photos/jdhancock/7175331883">JD Hancock</a>, Flickr

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Here's An ETF To Look At For Your St. Patrick's Day

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Eurozone Economy Returns To Positive Growth But Underlying Weakness Remains

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Earlier this year, the Visual Capitalist published an infographic highlighting the global growth forecast from the International Monetary Fund (IMF) for various countries worldwide in 2023. If you use country ETFs for tactical asset allocation, I have no doubt you&rsquo;d be interested in this information.
According to the <a href="https://www.visualcapitalist.com/mapped-gdp-growth-forecasts-by-country-in-2023/">infographic,</a> Senegal had the highest real (inflation-adjusted) gross domestic product (GDP) projection for 2023 at 8.1%; the second-highest on the list was Niger, at 7.3%. Given the current events in the African country, I&rsquo;m not sure that will stick. Fortunately, there aren&rsquo;t any Niger country ETFs that I&rsquo;m aware of.
Figuring out which emerging and developed markets to choose from is always a bit of guesswork. I&rsquo;ll recommend at least one emerging and one developed market for this article. For these, the U.S. and Canada will be excluded.
Based on the IMF&rsquo;s estimates, the three funds I chose are performing well in 2023 and are projected to grow at or near the 2.9% global average.

<h2>VanEck Vietnam ETF (VNM)</h2>
<div><img src="https://investorplace.com/wp-content/uploads/2018/04/vietnammsn-300x200.jpg" alt="" width="300" height="200"><div>Source: Shutterstock</div></div>
The IMF predicted Vietnam&rsquo;s GDP growth in 2023 would be 6.2%, tied with Benin, Cambodia and Togo for the eighth spot on the global list. Representing Vietnam is the VanEck Vietnam ETF (BATS:<a href="https://investorplace.com/stock-quotes/vnm-stock-quote/">VNM</a>). As far as I know, it&rsquo;s the only Vietnam ETF listed on a U.S. exchange.
The ETF got its start in August 2009. Thus far, it has gathered <a href="https://www.vaneck.com/us/en/investments/vietnam-etf-vnm/overview/">$630 million</a> in net assets, charging shareholders an expense ratio of 0.66%. The ETF tracks the MarketVector Vietnam Local Index&rsquo;s performance &mdash;&nbsp;a collection of companies incorporated in Vietnam.
The VanEck <a href="https://www.vaneck.com/us/en/investments/vietnam-etf-vnm/overview/" target="_blank">home page</a> points out that the country has a significant demographic advantage over many others: The average age of people in the country is 32, with 58% of working age.
VNM has 48 holdings, with the top 10 accounting for <a href="https://www.morningstar.com/etfs/bats/vnm/portfolio">56%</a> of its net assets. The top three sectors by weight are real estate (27.7%), financials (27.1%), and consumer staples (19.7%). It&rsquo;s important to note the weighted average market cap is $4.8 billion, which means the ETF holds no large-cap stocks.
VNM is up nearly 24% year-to-date but down 3% over the past year.
<h2>iShares MSCI Ireland ETF (EIRL)</h2>
<div><img src="https://investorplace.com/wp-content/uploads/2021/02/midcap-stocks-1600-300x169.jpg" alt="Mid-Cap Stocks Class Category Market Ticker Prices 3d Illustration" width="300" height="169"><div>Source: iQoncept / Shutterstock.com</div></div>
As far as I can tell, the IMF&rsquo;s prediction of 4.0% GDP growth for Ireland in 2023 was the highest of any developed market. The iShares MSCI Ireland ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/eirl-stock-quote/">EIRL</a>) represents that country.
EIRL has been around since May 2010. The fund has attracted just <a href="https://www.ishares.com/us/products/239662/ishares-msci-ireland-capped-etf">$102 million</a> in net assets over more than 13 years and tracks the performance of the MSCI All Ireland Capped Index &mdash;&nbsp;a collection of companies considered to be <a href="https://www.ishares.com/us/library/stream-document?stream=reg&amp;product=I-EIREL&amp;shareClass=NA&amp;documentId=926360%7E926202%7E926112%7E1180066%7E1242904&amp;iframeUrlOverride=%2Fus%2Fliterature%2Fsummary-prospectus%2Fsp-ishares-msci-ireland-capped-etf-8-31.pdf">based in Ireland.</a>
The exchange fund is a 25/50 capped index, which means no single stock can account for more than 25% of the index, and stocks with a weighting over 5% can&rsquo;t add up to more than 50%.
Currently, EIRL has 25 holdings, with the top 10 accounting for <a href="https://www.morningstar.com/etfs/arcx/eirl/portfolio">81%</a> of its net assets. The top three sectors by weight are basic materials (26.25%), consumer cyclical (30.25%), and industrials (12.96%). The average market cap is $13.9 billion, with large caps accounting for 33% of net assets, while mid-caps and small/micro caps account for 48% and 16%, respectively.
If you like mid-cap stocks, EIRL is for you. It&rsquo;s up 24% YTD.
<h2>iShares MSCI Peru and Global Exposure ETF (EPU)</h2>
<div><img src="https://investorplace.com/wp-content/uploads/2021/04/peru-1600-300x169.jpg" alt="white lama standing in Machu Picchu lost city ruins in Peru with green hills and stone walls on background with soft focus" width="300" height="169"><div>Source: Olga Kot Photo via Shutterstock</div></div>
The second of two emerging/frontier markets is Peru. The IMF predicted the South American country&rsquo;s GDP growth in 2023 would be 2.6%. While that&rsquo;s below the 2.9% global average, it&rsquo;s still much higher than the U.S. at 1.4%.
Representing Peru is the iShares MSCI Peru and Global Exposure ETF (NYSEARCA:<a href="https://investorplace.com/stock-quotes/epu-stock-quote/">EPU</a>), launched in <a href="https://www.ishares.com/us/products/239606/ishares-msci-all-peru-capped-etf">June 2009.</a> It has $115.5 million in net assets, $13.5 million more than EIRL. The fund has an expense ratio of 0.58% &mdash; the average for a global emerging market ETF.
EPU <a href="https://www.ishares.com/us/products/239606/ishares-msci-all-peru-capped-etf">tracks the performance</a> of the MSCI All Peru Capped Index, a collection of at least 25 companies and 20 issuers representing the &ldquo;broad Peru equity universe.&rdquo; Like EIRL, the index is capped on a 25/50 basis.
The ETF has 25 holdings, with the top 10 accounting for <a href="https://www.morningstar.com/etfs/arcx/epu/portfolio">74%</a> of its net assets. The top three sectors by weight are materials (48.64%), financials (26.49%), and consumer defense (8.24%). The average market cap for the fund is <a href="https://www.morningstar.com/etfs/arcx/epu/portfolio">$7.3 billion,</a> with large caps accounting for 55% of the net assets, while mid-caps and small/micro caps account for 22% and 21%.
Except for EPU&rsquo;s top holding, Southern Copper (NYSE:<a href="https://investorplace.com/stock-quotes/scco-stock-quote/">SCCO</a>), I&rsquo;m not sure the average investor would recognize many of the other 24 names.
Up nearly 11% YTD and 18% over the past year, the fund is starting to regain some of its losses from its March 2022 high of around $37.
On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"> Publishing Guidelines.</a>
<div>
Will Ashworth has written about investments full-time since 2008. Publications where he&rsquo;s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.
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The post <a href="https://investorplace.com/2023/08/the-3-best-country-etfs-to-buy-now-august-2023/">The 3 Best Country ETFs to Buy Now: August 2023</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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ASHR

BBCA

BBEU

CHIQ

CHIX

CQQQ

CWEB

CXSE

DBEU

DBEZ

DBGR

DXGE

EFNL

ENOR

EUDG

EUDV

EUFN

EURL

EUSC

EWGS

EWUS

FEUZ

FLCA

FLEE

FLEH

FLEU

FLFR

FLGB

FLGR

FLIN

FLIY

FLMX

FLSW

FLTW

FPXE

GSEU

HEDJ

HEWG

HEZU

IEUR

IEUS

INCO

INDL

INDY

ISRA

KURE

KWEB

MCHI

MEXX

NFTY

NORW

OEUR

PTEU

RFEU

SCCO

SMIN

SPEU

YANG

YINN