As we noted yesterday, many other countries around the world, including the U.S., injected more money into their banking systems in continuing efforts to calm the markets and exchange traded funds (ETFs). The different countries’ reactions might have some effect on their country-based ETF performance, as Gary Gordon for ETF Expert mentions.

For example, Australia has seen 20% declines since the credit problem spread globally whereas Canada has only seen 10% declines. The cause for the difference might be that where Australia chose to raise its interest rates from 6.25% to 6.5%, Canada chose to remain at the status quo of 4.5%. While this factor is just one among many that contribute to the performance of iShares MSCI Australia Index (EWA) and the iShares MSCI Canada Index (EWC), it’s still interesting to follow. For the month, EWA is down 14.5%, and EWC is down 9.8%.

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.