Sovereign debt ETFs can be beneficial if you want exposure to this sovereign debt, but on a more diversified scale. Bogoslaw points out that the most creditworthy issuers in the eurozone are France and Germany. Spreads on the weaker countries – that is, nearly all the others – are widening. That makes these funds risky right now, and all of them are well off their trend lines. [6 ETF Opportunities in Challenged Markets.]
Will this crisis be resolved or is more trouble in store? Watch these funds and wait to see what happens – it should be interesting. [How to Follow Trends.]
For more stories on what’s happening in Europe, visit our Europe category.
- SPDR Barclays Capital International Treasury Bond (NYSEArca: BWX): Yield to maturity is 2.8%; holds Italy (11.3%), Germany (10.2%), United Kingdom (4.6%), France (4.6%), Spain (4.4%), Netherlands (4.4%), Greece (4.2%) and Austria (3.6%)
- SPDR Barclays Cap Short-Term International Treasury Bond (NYSEArca: BWZ): Yield to maturity is 1.6%; holds Italy (11.1%), Germany (11%), United Kingdom (4.6%), Spain (4.4%), France (4.2%), Netherlands (4.2%) and Greece (3.4%)
- iShares S&P/Citi Intl Treasury Bond (NYSEArca: IGOV): Yield to maturity is 2.8%; holds Italy (8.8%), Germany (8.2%), France (7.4%), United Kingdom (4.9%), Spain (4.7%), Netherlands (4.7%) and Austria (4.2%)
- iShares S&P/Citi 1-3 Yr International Treasury Bond (NYSEArca: ISHG): Yield to maturity is 2%; holds Germany (10%), Italy (7.5%), France (6.3%), United Kingdom (4.7%), Netherlands (4.5%), Spain (4.3%) and Greece (4.3%)
Sumin Kim contributed to this article.