EWP and Spanish stocks share something in common with their French counterparts and the iShares MSCI France ETF (NYSEArca: EWQ): The potential for added upside despite substantial gains over the past two years. [Upside Ahead for the France ETF]
Like France’s CAC 40, Spain’s benchmark IBEX 35 Index is well below its all-time highs. In fact, with Wednesday’s close just under 10,268, the IBEX 35 is still nearly 1,000 points below its 2009 highs. The IBEX 35 would need to surge almost 45% to reach the all-time highs set in October 2007. That is when EWP flirted with $68. The ETF closed at $41.20 Wednesday.
On valuation, Spanish stocks are not expensive compared to U.S., U.K. and German equivalents and are also less expensive than stocks in Ireland and Greece.
iShares MSCI Spain Capped ETF
