If you’re looking for a haven from the eurozone troubles, Poland may well be it. You can play one of Eastern Europe’s most compelling growth stories with several exchange traded funds (ETFs).
Poland is the largest of the European Union’s former communist countries.
Despite the tragic loss of its president earlier this year, it has managed to keep growing – 4.2% in the third quarter – for a number of reasons:
- Germany’s robust recovery and strong consumer demand has given Poland the strength that is exhibiting, reports Vanessa Gera for Bloomberg BusinessWeek. [New Poland ETF Debuts At A Good Time.]
- Jack Ewing for The New York Times reports that the Polish zloty has held its own, and the fact that Poland has its own currency can also be a contributing factor to the success of the country in light of eurozone troubles. [Eastern Europe ETFs Outperform.]
- It was the only E.U. member to dodge a recession and no banks needed rescue, so the country is enjoying the spotlight and attracting increased interest. Foreign direct investment could be up as much as 28% this year.
It’s not all sunshine and roses, though. Poland has 11.5% unemployment and a large deficit of its own.
The country will not meet the technical requirements for euro membership until 2015 at the earliest, and policy makers do not sound as though they are in a big hurry to join. In light of the current eurozone troubles, you can’t exactly blame them. Let’s hope they learn a lesson from what’s happening in order to shape a brighter future.
- Market Vectors Poland ETF (NYSEArca: PLND): The most direct way to play Poland’s economy in ETF form; it’s up 29.5% in the last six months
- SPDR S&P Emerging Europe (NYSEArca: GUR): Poland is 10.5%
- iShares Emerging Markets Eastern Europe (NYSEArca: ESR): Poland is 14.9%
Tisha Guerrero 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.