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.

According to mortgage specialist Conti, property investors looking to snatch up houses overseas are sticking to proven, more traditional locations for long-term investment, according to NuWire Investor.

Locations of interest has France in the lead with 31% of inquiries received by the company, followed by Spain with 22%. Turkey remains in third with 13%, Portugal in fourth and Italy in fifth. Location interest is waning in countries such as Bulgaria and the United States.

• France. France has a relatively stable market. The country’s financial system is eager to lend to foreign investors, so much so that it may be possible to borrow up to 100% of the property value. Interest is low and many property sellers are still dropping prices.
• Spain. Buyers have a large selection of available properties and the benefit of low interest rates. But there are problems with exposure to corrupt licensing laws or land grab issues.
• Turkey. Turkey is situated in a nice Mediterranean location and overseas buyers won’t be up against a strong euro. Tourism is on the rise, which should increase demand for quality rental properties in tourist areas.
• Portugal. Portugal has seen a drop in interest rates and lower property prices, with some locations down 30%. Recently, the country reported an end to its recession.
• Italy. Italy can yield profitable acquisitions in more popular areas with international tourists.
• Bulgaria. Lenders have been in a bind with development and the market has a glut of  buildings. The result is a steep drop in valuations and banks are questioning asset security, which inevitably has lead to lower overseas demand.
• United States. The main reason overseas buyers look to the United States is because of a depreciating dollar, which has made properties cheaper.

• SPDR Dow Jones Wilshire International Real Estate (NYSEArca: RWX): up 36.4% year-to-date; France is 11.3%, Italy is 0.14%

• iShares FTSE/NAREIT Global ex-U.S. (NASDAQ: IFGL): up 41.8% year-to-date; France is 7.1%, Italy is 0.2%

For more information on the real estate sector, visit our real estate category.

Max Chen contributed to this article.

Germany and France both reported increases in growth and the numbers have convinced some analysts that Europe’s economy is recovering, perhaps even faster than that of the United States’, reports Charlie Parker for Citywire.

There are some risks, though:

• Some economists think, however, that the improved numbers may not be a show of overall economic strength but rather a fall in imports as exports remain the same, which would come up as a stronger net trade.

• The unemployment rates in Germany and France may also be misleading because of the larger public sector. It is seen that the fall in production in Europe did not reflect an equal fall in unemployment. The economies could suffer later from the excess weight.

• The European Central Bank has cut its benchmark interest rate to a record 1% low and begun a $86 billion program of buying assets, writes Simon Kennedy for Bloomberg. Officials are regarding the economic recovery with caution and won’t be reversing their policies any time soon.

• The ECB projected that the European economy may contract 4.6% this year and contract 0.3% in 2010. Deutsche Bank estimates a 1.3% contraction next year and UBS AG predicts 2.1%.

One way to access the European market is through the PowerShares FTSE RAFI Europe (PEF) ETF. PEF, currently up 42% year-to-date, tracks the performance of the largest European equities in the FTSE RAFI Europe Index, which normally invest 90% of its total assets in securities that comprise the Index and ADRs based on securities in the Index, as stated by InvescoPowerShares. The ETF has 526 holdings with an expense ratio of 0.75%.

• Country allocations: United Kingdom 30.6%, France 14.7%, Germany 13.3%, Italy 7.6%, Switzerland 6.4%, Netherlands 5.8%, Spain 5.3%, Sweden 4.0%, Ireland 2.6%, Belgium 2.5%

For more information on Europe, visit our Europe category.

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.

Europe’s SMEs, firms with less than 250 employees, represent a workforce of 88 million people and make up two-thirds of private-sector employment, according to the Economist.

SMEs have less assets, smaller retained earnings, fewer customers than large corporations, and they can’t spread risk by diversifying product lines or expanding to different locations. These small businesses are also experiencing dwindling demand and shortage of bank credit, but governments are starting to order banks to lend to them, provide credit guarantees, suspend some taxes and force public bodies to pay up faster.

In a recent survey, a little more than half of 804 French SMEs expect revenues to remain the same or increase in 2009.

German domestic consumption is keeping steady and it is helping to support home businesses while exporting firms are more troubled.

While in Britain, corporate liquidations increased to 4,941, up 56% year-over-year, in the first quarter and most of which were in SMEs. But a recent survey found 60% of businesses performing equivalent to or better than last year.

Small-caps in other countries aren’t that much different than they are in the United States, in that their small size makes them especially nimble and better able to adapt to changing conditions.

• SPDR S&P International Small Cap (GWX): up 10.4% year-to-date; Western Europe is 34.1%

• WisdomTree International SmallCap Div (DLS): up 7.9% year-to-date; Western Europe is 42.2%

Max Chen contributed to this article.

An official from the Chinese Ministry of Commerce stated that the government will send investment and procurement delegations to Europe, reports Diao Ying for China Daily.

These outward investment ventures are seen to help stabilize foreign trade and industry structure. It is also an opportune time to start looking for overseas assets since they are now dramatically cheaper as a result of the economic downturn.

The Chinese government has sent delegations to Germany, Spain, Switzerland and Britain. They will also be visiting France later on. The trade mission already signed contracts worth more than $13 billion. Another team is also in the United States negotiating $10.6 billion in trade and investment contracts.

• Vanguard European ETF (VGK): down 0.8% year-to-date

• PowerShares FTSE RAFI Europe Portfolio (PEF): up 5.6% year-to-date

• BLDRs Europe 100 ADR Index Fund (ADRU): down 2.9% year-to-date

Max Chen contributed to this article.

Once thought to be immune from the economic disaster, the steady cash flows and steady demand are not as resilient as once believed. Molly Neal for The Wall Street Journal reports that many European operators are reporting falling profits, with much more of the same anticipated in the future.

Premium mobile services are no longer affordable, and have since become a luxury in markets such as Spain, France, the United Kingdom and Germany. Blame the recession for putting a damper on the growth of this sector over there.

Meanwhile, telecom companies in Malaysia and the Philippines have shown growth. TMC net.com press release also reports that coming into 2008 just over 90% of the 27 million people in Malaysia had a mobile telephone service. Evidently Malaysia and the Philippines has developed one of the more advanced telecom environments in the developing world.

Is their growth enough to restore the sector at large?

In the United States, telecommunications companies could benefit from the economic stimulus package. And despite a global recession, AT&T (T) has announced that it would spend $1 billion in expanding its global network, which would add greater capacity for businesses in the United States and overseas.

• WisdomTree International Communications (DGG): down 16.9% year-to-date

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.