A large number of diversified developed-markets exchange-traded funds have exposure to Swiss stocks, with Switzerland often being one of the largest country weights following the U.K. and Japan in those funds. So, it should be good news that Switzerland surprisingly avoided a recession in the second quarter.
The Swiss economy posted second-quarter GDP growth of 0.2 percent after contracting by the same amount in the first quarter, according to Bloomberg. Two consecutive quarters of contracting economic growth marks recessions.
The Swiss Situation
Data indicate Switzerland was able to avoid that fate, but ETFs such as the iShares MSCI Switzerland Index Fund(ETF) (NYSE: EWL) and the First Trust Switzerland AlphaDEX ETF, First Trust Exchange Traded AlphaDEX Fund II (NASDAQ: FSZ) still face headwinds.
While August has been full of shocks to the foreign currency market with a steady stream of developing countries devaluing their currencies, it should be recalled that back ...
/www.benzinga.com/trading-ideas/long-ideas/15/08/5799843/swiss-miss-switzerland-skirts-recession-but-etfs-struggle alt=Swiss Miss: Switzerland Skirts Recession, But ETFs Struggle>Full story available on Benzinga.com
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