July 26, 2007 at 8:01 am by Tom Lydon
Many eyes have been on the Tour de France, but what about the French exchange traded fund (ETF) and the country’s new government? In May, new president, Nicolas Sarkozy and his center-right party took office with the economy on the agenda. Some of the highlights include lowering the tax burden on businesses, ending the 35-hour work week and reducing the size of the government. Richard Widows for TheStreet.com reminds us that part of the French economy’s allure for investors is that there is plenty of room for improvement and growth. Even mild success by the new government could result in change for the better.
The steady rise of the euro in relation to the U.S. dollar has helped many European investments. Returns on French stocks have been positive in recent years, and the French ETF iShares MSCI France (EWQ) is up 12% year-to-date. So while surveying the Tour de France cyclists on July 29, realize the French economy and ETF will continue on pedaling.
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