As some markets are see-sawing, Switzerland’s exchange traded fund (ETF) could be primed for a rise after having underperformed.

The iShares MSCI Switzerland (EWL) ended 2007 up 4.5%, but has gotten off to a slow start so far this year. Year to date, it’s down 7.9% and currently resides 7.7% below its trend line (200-day moving average).

The standard of living in the country is higher than that of any other European economy. Inflation and unemployment (3.1% in 2007) are low. The economy is heavily dependent on foreign guest workers, who make up 20% of the labor force. And the country’s notorious banking secrecy laws have made it a safe haven for investors.

Let’s not forget their delicious, delicious chocolate, either.

Its GDP stagnated from 2001-2003, but now there are signs of a turnaround: in 2006, it went up 2.9%, and last year it leapt another 2.6%. What’s in store for 2008?

Thomas Smicklas for Seeking Alpha feels that Switzerland and its ETF could be primed for a rebound. Its political neutrality could mean that the top holdings in the fund can do business with any country in the world, which set them up for some upward movement.

Among the fund’s top holdings are Nestle (17.1%), Roche Holding Ltd. (13.1%), Novartis (10.9%).

The Swiss franc has been performing strongly against the U.S. dollar, as well:

Tags: Europe, EWL, Switzerland