Facing a harsh regulatory environment and slack economic growth in Europe could further pressure the banks S&P downgraded while leading to an uptick in volatility, according to the ratings agency.
Overall, it has already been a trying past few days for EUFN. Last week, the Bank of Spain told banks in that country to be careful with how much in dividends they payout because of the country’s tenuous economic outlook. Spain, the Eurozone’s fourth-largest economy, accounts for nearly 9% of EUFN’s country weight, according to iShares data.
iShares MSCI Europe Financials ETF
ETF Trends editorial team contributed to this report.