Netherlands: A Diamond In the Rough

April 7th at 1:00am by Tom Lydon

Greece, Portugal, and Spain may be dominating eurozone headlines with their economic woes, but the Netherlands seems to be an overlooked bright spot in the euro region’s economy. Interested investors can look to exchange traded funds (ETFs) for a diversified strategy to invest in the Netherlands.

While eurozone unemployment hit 10% in February, the Netherlands had the lowest rate at just 4%, reports The ETF Professor of Benzinga. Compare that to Spain’s eurozone-leading rate of 20%.

Another reason to like the Netherlands, according to Radio Netherlands Worldwide, is that foreign investment rose from 667 million euros in 2008 to 3.142 billion euros today. Two billion euros came from German energy giant RWE’s investment in a coal-fired electricity plant in Eemshaven, and 670 million euros came from Finland oil company Nestle Oil’s investment in a bio diesel production facility in Rotterdam.

Caretaker Minister of Economic Affairs Maria van der Hoeven claims, “trade and foreign investment are not just the driving force of the Dutch economy, they are the very way out of the crisis.”

As the eurozone works to improve its member economies and concerns about Greece once again are renewed, the Netherlands may be poised for an inconspicuous, but rapid recovery. For the last month, the Netherlands ETF has been a eurozone standout, gaining 3.3%. [Hope in Sight for Greece, Portugal and Spain?]

For more stories about the Netherlands, visit our Netherlands category.

  • iShares MSCI Netherlands (NYSEArca: EWN)

Sumin Kim contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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