Investors are pulling money out of European stocks and the French equity market has been particularly hard hit.
In the past 3 months, the MSCI France Index Fund (EWQ) is down 28% compared to a 10% decline for the S&P 500 Index (SPY) over the same period.
Compounding the general flight from risk is the connection between French banks and the Greek debt crisis. The Wall Street Journal reported today that Moody’s Investors Service Inc. could downgrade the French banks this week due to their holdings of Greek government debt.
Top holdings for EWQ include Total SA, Sanofi, BNP Paribas and LVMH Moet Hennessy Louis VUI. The expense ratio for the $300 million ETF is 0.54%.
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– ETF MarketPro Staff
September 12, 2011