Poland ETFs Benefit From Debt Crisis

January 21st at 11:00am by Tom Lydon

If you want to play the eurozone economy, but you don’t want any of that pesky debt crisis dragging your funds down, then you’d do well to consider Poland exchange traded funds (ETFs).

While broad Europe ETFs have gained about 12% in the last six months, ETFs like iShares MSCI Poland Investable Mkt Index (NYSEArca: EPOL) and Market Vectors Poland ETF (NYSEArca: PLND) have gained about 26% in the same time frame.

It begs the question: why wait on a eurozone recovery when you can play an economy that’s already there?

A cooling could be coming soon, though. A majority of analysts believe that Poland’s Central Bank will increase rates by a quarter point from its historic low of 3.5%, says Jan Cienski for The Financial Times. The economy’s strong growth, along with the bank’s record low rates, is fueling inflation, which hit 3.1% in December, or a 11-month high. Additionally, the rate hike should provide a boost to the relatively weak zloty currency.

For more information on Poland, visit our Poland category.

Max Chen 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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