5 ETF's For a European Fall Out

I realize that in the coming weeks we could experience something as drastic as we experienced in July and August of last year.  The fact is that Greece, Spain, and Italy are the poster children for Europe's woes and investors and traders are just waiting for the shoe to drop.  That could come as early as Saturday and we will know by Monday how the market will react.  Greece stays in the Eurozone, temporary relief, Greece leaves, big market move down.  Spain and Italy are bigger and in some ways in worse shape, but that is somewhat down the road.


Italy and Spain as you can see below have Debt to GDP ratio in the top ten in the world.
So even if we get past Greece and the elections,  Spain and Italy are going to weigh heavily on the markets for the foreseeable future.




Five ETF's that will be influenced by the upcoming Greek election are the ETF's for Europe, the Euro, Spain, Italy, and China.  These ETF's will be heavily influenced by a Greek default and an exit from the Eurozone.   China will be impacted because it is a huge trading partner with Europe and with  a weak Europe it weakens China as well, which is why included the China ETF

iShares MSCI Italy Index Fund  (EWI)



iShares S&P Europe 350 Index Fund (IEV)



Currency Shares Euro Trust (FXE)


iShares MSCI Spain Index Fund (EWP)



iShares FTSE China 25 Index Fund (FXI)




The take away with many of these ETF's is that they are in very vulnerable positions to trade to the down side next week due to the rally that many experienced over the last week.  If a Greek exit happens these ETF's are going to be influenced heavily.

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Disclaimer: This article is intended to be informative and does not constitute a buy, hold, or sell recommendation., and should not be construed as personalized advice as it does not take into account your specific situation or objectives