Alternatives to EWI include the the iShares Currency Hedged MSCI Italy ETF (NYSEArca: HEWI) and Deutsche X-trackers MSCI Italy Hedged Equity ETF (NYSEArca: DBIT), both of which are currency hedged ETFs.
Italy’s plans to shore up its banks has been a lengthy process, fueling concerns among investors that the effort may not bear fruit.
“The precautionary recapitalisation process in Italy has been long, adding to investor concerns about the banking sector and damaging the deposit franchises of the troubled banks being assessed. Vicenza and Veneto’s market shares have declined, including in their home region of the Veneto, where they were historically strong. They are therefore becoming less systemically important, which may reduce the likelihood of precautionary recapitalisation,” according to Fitch.
Energy and utilities stocks combine for over 34% of EWI’s weight. The ETF holds just 24 stocks.
For more information on Italy, visit our Italy category.