iShares MSCI Netherlands (EWN)
It is true that Standard & Poor’s recently downgraded Dutch debt. And losing one’s triple AAA rating should be a big deal, at least theoretically. On the other hand, Fitch and Moody’s reaffirmed the heralded triple AAA ratings, and the Dutch bond market has not skipped a beat. Even better, a rising number of folks believe that the Netherlands may have turned the proverbial corner by placing recessionary forces in the rear-view mirror.
Economic concerns notwithstanding, EWN largely focuses on non-cyclical stalwarts like Unilever and Heineken with a 27% weighting to the consumer staples sector. Furthermore, EWN remains in a strong price uptrend with limited volatility over the previous 18 months.