Declining European ETFs

Some country-based exchange traded funds (ETFs) in Europe seem to be slipping lately. iShares MSCI Italy Index (EWI), iShares MSCI Belgium Index (EWK) and iShares MSCI Austria Index (EWO) look as if they’re breaking down, says Tate Dwinnell for Self Investors. Year-to-date, EWI is down 1.7%, EWK is down 3.5% and EWO is down 2.1%.

Reasons for the declines vary by country. Unstable politics and slow economic growth, according to economic data from The Economist, are a few factors in Italy’s declining performance. In Belgium’s case, financials and banks make up more than 50% of its ETF, says Carl Delfeld for ETF XRAY. Considering those areas are the hardest hit by subprime and credit problems, it’s no wonder EWK has been pulled down with it. Austria has been hampered with weak domestic consumption that has kept its growth rate below 3%, according to the CIA World Factbook.