On a year-to-date basis, the Global X MSCI Greece ETF (Global X Funds (NYSE: GREK)) is the only single-country exchange-traded fund tracking a PIIGS economy that is trending upward. Then again, none of those ETFs have been nearly has bad as the iShares MSCI Italy Index (ETF) (NYSE: EWI).
The Banking Problem
As has been previously noted in this space, a major source of concern for broader Italian equity benchmarks, EWI and the eurozone's third-largest economy in general is the health of Italy's major banks. The point is particularly relevant when discussing EWI, the largest Italy ETF trading in New York, because EWI allocates 32.6 percent of its weight to the financial services. That is about 1,200 basis points more than is devoted to the ETF's second-largest sector allocation, utilities.
/www.benzinga.com/trading-ideas/long-ideas/16/05/7969937/italy-etf-waiting-on-banking-reforms alt=Italy ETF Waiting On Banking Reforms>Full story available on Benzinga.com
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