July 07, 2008 at 3:00 pm by Tom Lydon
Political events are often one of the risks of international exchange traded funds (ETFs).
That being said, unrest in Switzerland could wind up affecting the iShares MSCI Switzerland Index (EWL).
Christopher Blocher pulled his party out of the government in December, putting his political future on the line and the peace within the fellow members. The SVP party, as it’s known by its German initials, was Switzerland’s largest.
A possible internal rebellion by fellow SVP party members are facing a bigger political setback, as limitations on immigration will be up in the air. It is rumored that Blocher may be favoring a Nationalist regime, reports Marc Wolfensberger on Bloomberg. He’s calling for immigration limits, ties with the European Union lessened and a cut to corporate taxes.
Parliament ousted him on the as justice minister on Dec. 12 after four years, over “lack of collegiality.” Blocher’s response was to withdraw the SVP from the four-party-power-sharing arrangement that has governed Switzerland since 1959. What’s next? Wait and see.
EWL is down 9% year-to-date.
Tags | Europe, EWL, Switzerland
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