According to Gary Gordon for ETF Expert, there is a slight discernible difference between the five largest net exporters and net importers as shown in their respective ETF growths.

Net importers’ five-year total % change:

• Vanguard Total U.S. Market (NYSEArca: VTI): 12.8%
• iShares MSCI United Kingdom (NYSEArca: EWU): 10.7%
• iShares MSCI Spain (NYSEArca: EWP): 91.7%
• iShares MSCI France (NYSEArca: EWQ): 35.1%
• The India Fund (NYSE: IFN): 129.4%

Net exporters’ five-year total % change:

• iShares FTSE China 25 Index (NYSEArca: FXI): 173.9%
• iShares MSCI Germany (NYSEArca: EWG): 53.9%
• Central Europe/Russia Fund (NYSE: CEE): 91.3%
• iShares South Korea (NYSEArca: EWY): 90.5%
• iShares MSCI Netherlands (NYSEArca: EWN): 46.3%

The data shows that percentage gains are leaning toward exporters and developing countries, more export-dependent, are producing larger percentage returns.

Gordon makes the distinction that successful investing in seemingly export-type countries is more dependent on overall economic growth and less to do with the large “net exporter” moniker.

For more information on ETF trends, visit our trend following category. Read more of Gary Gordon’s ETF observations at ETF Expert.

Max Chen contributed to this article.

Germany and France each experienced 0.3% growth from the previous three-month period, Angela Charlton and Maria Danilova for Yahoo! News. In the previous quarter, Germany contracted 3.5% and France’s economy diminished 1.3%. The unexpected increase helped the eurozone to contract only 0.1% compared with the anticipated 0.5%.

The turnaround in the two countries is attributed to, among other things, government programs that supported the auto industries within the countries. The so-called “Cash for Clunkers” was one such program that helped economies by enticing consumers to buy again. The German government reported a rise of 7% in German exports during the month of June.

There are still some problems European countries need to grapple with, however. Europe still faces a rising unemployment rate and the expiration of the auto incentives could dampen consumer demand.

The better-than-expected performance of the region has helped strengthen the euro, which is around $1.40. But, a higher euro translates into more expensive eurozone products, which could hurt already beleaguered European manufacturers.

• iShares MSCI Germany Index (EWG): up 5.2% year-to-date

• iShares MSCI France Index (EWQ): up 10.6% year-to-date

For more information on European countries, visit our Europe category.

Max Chen contributed to this article.

In the annual Article IV assessment of the French economy, the IMF was pleased with the French government’s implementation of fiscal stimulus and shoring up the banking system, reports Tom Barkley for The Wall Street Journal.

The IMF warns of additional deleveraging in the financial sector and French authorities agree with the need for publicly disclosed stress tests. Further bank losses and write-downs are still possible with bank balance sheets riddled with toxic debt.

The country’s economic contraction is estimated to slow this year; previous forecasts put the decline at 3.0%. The also economy is expected to grow 0.4% in 2010. The government’s main fiscal challenge is to consolidate its public finances since France is heading toward unsustainable debt.

The IMF states that falling tax revenues in France will lead to “uncomfortably high fiscal deficits,” and more stimulus plans should be small, writes Lesley Wroughton for Reuters. Lower output could drop tax revenues in 2009/10 and will increase the country’s deficit.

Further exacerbating the situation is the Eurozone increase in unemployment, which could  weaken private consumption. Unemployment is at a 10-year high.

• iShares MSCI France Index (EWQ): up 2.4% year-to-date

For more information on the country France, visit our France category.

Max Chen contributed to this article.

French Prime Minister Francois Fillon admits that their economy will “probably” shrink by 2.5% this year, according to Forbes. Figures show that the French economy is contracting at its fastest rate in more than 30 years.

Disgruntled workers have grown increasingly antagonistic, detaining managers and impeding production, after recent layoffs and cut backs. Anita Elash for Marketplace reports that one of France’s richest men, Francois Henri Pinault, is being held hostage by workers upset by plans to lay people off at his chain of stores. Bossnappings were common in France in the 1970s. Pinault is one of several lately – there have been bossnappings at 3M, Sony and Caterpillar, as well.

The government has promised to keep taxes low in hopes of easing the consumer’s burden. It is now projected that recovery may occur next year, but at a slow crawl.

In the widely-known French luxury industry, which accounts for around 2.8% of annual exports, companies are holding onto traditions and quality, but there is a need to adapt so as to stay competitive in today’s markets, write Katie Catillaz et. al. for Knowledge@Wharton.

French president Nicolas Sarkozy has initiated economic reforms to increase the international competitiveness of France’s economy. French luxury foods companies are now pursuing two strategies of brand innovation and increased market share in international markets.

• iShares MSCI France Index (EWQ): down 14.3% year-to-date

Max Chen contributed to this article.

Germany, the world’s biggest exporter of goods, reports that its unadjusted exports declined 23.1% and imports diminished 16.4% for the year in February, reports Paul Carrel for Reuters UK. The reduced domestic demand resulted in a 3.5% drop in manufacturing orders for the month of February.

It appears that the German economy has been hit with its worst recession since World War II. The German GDP contracted 2.1% in the fourth quarter of 2008, and analysts are projecting a greater contraction in the first few months of this year. Economists estimate a 4.4% drop in GDP for the year.

• iShares MSCI Germany Index (EWG): down 16.9% year-to-date

Compared to the previous year, French imports and exports both plummeted. It is calculated that French exports plunged 20.9% year-over-year. The masses are consuming less and companies are loath to invest.

The Bank of France projects the French economy to contract 0.8% in the first quarter. It was revised from a previous contraction of 0.6%. Analysts are estimating a minimum of a 1% drop in the first quarter.

iShares MSCI France Index (EWQ): down 14.7% year-to-date

Combined, German and French exports amounted to 45% of the Euro zone’s exports last year.

Max Chen contributed to this article.

• High Foreign Sales. France’s ETF, iShares MSCI France Index (EWQ) currently down 4.9% in the last week; down 8.4% in the last month, includes many world-class firms which provide foreign sales that account for 58% of the overall sales, writes Michael Krause for ETF Guide. The high percentage of French-firm foreign sales is also a good indicator for the global economy and its eventual recovery.

• Diversity. The fund is also well diversified with no large concentrations in one or two sectors.

• Insulation. The diversification and sector balance has kept French firms from rapid deterioration experienced elsewhere. Their firms may have a smaller decline in earnings in the downturn since they have smaller debts which would help them drudge through the credit debacle.

EWQ is far below its trend line right now, however. But given these factors working in its favor, it might be worth keeping an eye on for future possibilities.

Joe Bel Bruno and Jane Wardell for the Associated Press report that the alleged victims who sunk cash into Wall Street money manager Bernard Madoff’s investment pool include real estate magnate Mortimer Zuckerman, the foundation of Nobel laureate Elie Wiesel, and a charity of movie director Steven Spielberg.

Among the banking institutions involved are Britain’s HSBC Holdings PLC, Royal Bank of Scotland Group PLC and Man Group PLC, Spain’s Grupo Santander SA, France’s BNP Paribas and Japan’s Nomura Holdings. The pyramid scheme has robbed some of finance’s biggest players of $2 billion, with banks taking the biggest hit.

France’s BNP Paribas said Sunday its maximum potential loss was about $468 million; The Royal Bank of Scotland is out $600 million with hedge fund exposure; Banco Santander of Spain is exposed $23 million plus and Japan’s Nomura is out $303 million, according to CNN Money. HSBC is the largest victim at $1 billion.

A Ponzi, or pyramid scheme, is an investment fraud in which high profits are promised to investors from fictitious sources. Early investors are paid off with funds raised from later ones. Madoff was a former chairman of the Nasdaq exchange and was arrested last Thursday on a single securities charge for heading the $50 billion scheme.

The Global Hedge Fund Index, designed to represent the overall composition of the global hedge fund universe, is down 22.7% year-to-date. It normally has a two-day lag, so it remains to be seen how the latest developments influence the index.

Hedge funds are largely unregulated, and they’re mysterious entities only open to a select few investors. They’ve seen heavy redemptions this year, and this could be the straw that breaks the camel’s back. Even decently performing hedge funds, in fact, are said to have been seeing such heavy withdrawals that they’ve halted redemptions.

Those who invest in them are placing a lot of trust in the companies that run them. But will people be wondering now whether they can be trusted after all? We won’t know all the ramifications for awhile, but it may not be pretty.

• iShares MSCI Spain Index (EWP): down 40.7% year-to-date; Santander 18.1%

• iShares MSCI France Index (EWQ): down 44.4% year-to-date; BNP Paribas 7%

Consumer spending within French households shrank 0.4% in October, although French spending overall helped avoid a third-quarter recession. October proved to be a low point, as new cars and light trucks dropped off in sales and added to weaker monthly data, reports Nathalie Gentaz for Associated Press.

The fourth quarter may present more contraction throughout the nation, as the outlook remains uncertain. A dour mood seems to be taking over as more households have dipped into savings this quarter, report Anna Willard and Veronique Tison for Guardian UK.

French President Nicolas Sarkozy vows to protect their key industries, and he has launched a $25 billion fund to help keep French industry moving. Sarkozy said the fund would invest in viable firms in need of cash, and shore up the balance sheets of companies deemed vulnerable in the face of falling stock prices, reports Yann Leguernigou for Guradian UK.

Meanwhile, two women are vying to become the first women to lead the Socialist party. The hope is that whoever wins will eventually become the next leader of the country.

iShares MSCI France (EWQ), down 54.3% year-to-date.

The primary reason so few banks have accepted government funds is that they’re wary of the signal it could send to financial markets. Other banks believe that they have sufficient capital or can meet the capital ratio requirements needed to weather the storm, reports Carter Dougherty for The New York Times.

Investors think that the financial stocks, especially ING, will end up with more government stakes in them before the financial crisis is over. There was no rush for Europe to nationalize this week, either.

The iShares MSCI EMU Index (EZU) is down 46.9% year-to-date.

The French bank, Groupe Caisse d’Épargne, reported that they lost $807 million as of Friday, by unauthorized trading of derivatives by a team on the bank’s own responsibility. Matthew Saltmarsh for The New York Times says the lender reported the loss a result of crazy market volatility last week and the position is closed.

The speculation of the losses due to big derivatives losses at such as large bank echoed through the Paris exchanges and put downward pressure on the banks’ shares.

One thing that could aid France in this downturn is the fact that there, it’s much harder to spend what you don’t have, reports John Laurenson for Marketplace. Qualifying for a mortgage there can involve proving you’re healthy and getting a life insurance policy.

That doesn’t mean all is well there – the housing market is bearish and thousands of restaurants and cafes have gone out of business – but France’s banking system is a little more trustworthy than most.

iShares MSCI France (EWQ) is down 43.5% year-to-date.

Stocks on both continents rose by varying degrees on the news, says Louise Watt for the Associated Press. The Group of Seven, an organization made of up the world’s leading economic powers, said today that they would do everything they could to help ease the crisis.

Across Europe, Britain’s FTSE 100 rose 0.22%, Germany’s DAX rose 0.42%, France’s CAC 40 rose 0.27%. In Asia, Japan’s Nikkei 225 rose 1.4%, Hong Kong’s Hang Seng jumped 1.6% and in China, the Shanghai Composite jumped 7.8%.

Northern Trust’s line of ETFs offers exposure to the indexes of several countries around the world, all of which launched this year, including:

• NETS FTSE 100 (LDN), down 19.5% since April 10 inception
• NETS CAC 40 (FRC), down 17.5% since April 16 inception
• NETS DAX (DAX), down 18.5% since May 22 inception
• Nets Hang Seng (HKG), down 17.1% since April 16 inception

Other funds that offer exposure to these countries include:

• iShares MSCI France (EWQ), down 19.6% year-to-date
• iShares MSCI Germany (EWG), down 22.3% year-to-date
• iShares FTSE/Xinhua China 25 (FXI), down 30.4% year-to-date
• iShares MSCI Japan (EWJ), down 14.5% year-to-date