While the focus in the European Union has been on Greece lately, Spain has been trending up.  The iShares MSCI Spain Index Fund (NYSEArca: EWP) is up over 11% over the past six months.

This week the country passed a key test as they managed to sell $5.67 million in short term government bonds. This near hit the targeted maximum economists wanted to see. [Country ETFs to Play the European Recovery.]

“Against the backdrop of Greece’s multinotch downgrade, this sale will provide some fodder for fans of the Spanish decoupling story,” said Richard McGuire, senior fixed-income strategist at Rabobank. [Spain ETF Affected by Moody’s Downgrade.]

The Spanish economy has set itself apart from the rest of the EU and away from Greece’s sovereign downgrade. Emese Bartha for The Wall Street Journal explains that Spain has managed to decouple from Greece, Ireland and Portugal.

However, don’t be fooled yet–Spain’s economy is still under scrutiny.

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.

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