ETFs To Avoid On European Banking Woes [Global X FTSE Portugal 20 ETF]

PGAL is unpopular in the space with an asset base of $34.8 million and sees moderate trading volumes (see all European Equity ETFs here).


This recently launched fund tracks the performance of companies domiciled in Spain and aims to represent the performance of a combination of three factors – value, quality and low volatility.  The top two stocks – Banco Santander and Telefonica – dominate the fund with double-digit exposure.

Financials occupies the bulk with more than one-third allocation, followed by Utilities and Industrials. The fund has plunged 4% in the past one week and 6.4% in the past one month. It charges 30 basis points as fees (read: State Street Launches Six International Quality ETFs).

iShares MSCI Italy Index Fund (NYSEARCA:EWI)

The fund provides broad exposure to Italian stocks and manages an asset base of $1.7 billion. The fund trades in good volumes of more than 4 million shares a day and charges 50 basis points as fees.

ENI SPA is the only stock in the fund that has a double-digit allocation. Also, the top 10 stocks occupy more than 50% of total assets, suggesting concentration risk. Furthermore, the Financials and Energy sectors alone form more than 60% of total assets, suggesting concentration risk on that front as well.

EWI has reversed most of its earlier gains, having lost 2% in the past one week and 7% in the past one month.

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