Italy ETF Pinched by Election Results

Financial services stocks account for almost 36% of EWI’s weight, by far the ETF’s largest sector allocation. Energy and utilities names combine for about 31% of the fund’s weight. EWI has a trailing 12-month dividend yield of about 2%.

Italy is still struggling with issues within its banking sector, an important consideration with EWI because financial services is the largest sector allocation in the largest Italy exchange traded fund. The Italian government has been under pressure to calm concerns over its ailing banking system.

“Though no party will be able to rule alone based on latest results, the surge of support for populist parties has been compared with Brexit and the election of Donald Trump in the US,” reports the BBC. “The right-wing coalition, which includes the League, Mr Berlusconi’s Forza Italia (Go Italy!) party and the far-right Brothers of Italy, is tipped to get 248-268 seats – below the 316 needed for a majority.”

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