The biggest obstacle for the Dutch country to overcome is the high mortgage debt that stands at 111% GDP, reports Shareholders Unite. The domestic housing market is open to public intervention and can be haphazardly run. The Rabobank expects house prices to fall 5% this year and another 4% next year, and construction is basically at a halt. [The Contrarian: Single Country ETFs]
Household savings within the country is one of the stronger points. Overall household savings is about one-half the mortgage of the nation. And the Dutch pension system is still healthy and in place, as it is the strongest system in Europe.
The Dutch ETF is the iShares MSCI Netherlands Index ETF (NYSEArca: EWN) which is dominated by Unilever. This company is a consumer staples play, and it would be logical to think that this defensive play has given the fund some stability. The fund has gained about 20% over the past quarter.
iShares MSCI Netherlands Index ETF
Tisha Guerrero contributed to this article.