The $414 million France ETF is up about 12% so far this year.
Downside risks remain within the banking sector, but the broad French market is well diversified with no single sector accounting for more than 16% of the MSCI France Index, Koesterich said.
“With lingering uncertainty over the Greek bailout as well as the timing for Spain to request assistance through the European Stability Mechanism, I remain cautious on southern European equities. Instead, I look to the less sensitive and undervalued core markets. And I would include France in that category now,” he wrote.
iShares MSCI France Index Fund
