French ETF Embraces Globalization

Investing in the France exchange traded fund (ETF) has proven to be profitable over the past few years. The iShares MCSI France (EWQ) made 3x more money over the past 5 years than the S&P 500. EWQ is up 27% year-to-date.  Paradoxically, France’s economy hasn’t been doing so well.  In per capita GDP, the French have dropped from 7th in the world to 17th. Only 36% of French support a free market economy and too many taxes and bureaucrats have stifled creativity and innovation in France, ponders Nicholas Vardy.

France’s companies are global and highly profitable. About 80% of profits are outside of the French market. The private sector has adjusted to the realities of globalization, while the public sector supports Marxist theories about production and class struggle.

EWQ is made up of these global companies, the top holdings include Total, Sanofi-Synthelabo, BNP Paribas and AXA.