Switzerland is often see as a beacon of economic stability in what can a volatile European scene, but the Swiss franc always looms large for investors considering Swiss equities. Franc strength often weights on Swiss stocks, particularly when the currency is prized as a safe-haven and when gold prices are rising.
Unfortunately for the iShares MSCI Switzerland Index Fund(ETF) (NYSE: EWL), the largest U.S.-listed exchange traded fund tracking Swiss stocks, the Guggenheim CurrencyShares Swiss (NYSE: FXF) is 4.7 percent year-to-date. That makes FXF one of the best-performing developed market currency ETFs, which helps explain why EWL is lower by 3.2 percent.
That is despite the Swiss National Bank's (SNB) best efforts to suppress the franc. Switzerland is one of the negative interest rate nations, and the good news for the Swiss economy is that the euro is higher against the franc over the past year. FXF measures the U.S. dollar against the Swiss currency. With the eurozone being a primary destination for Swiss ...
/www.benzinga.com/trading-ideas/long-ideas/16/04/7823225/switzerland-etf-sort-of-stable-but-currency-is-an-issue alt=Switzerland ETF Sort Of Stable, But Currency Is An Issue>Full story available on Benzinga.com
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