Italy ETF Thrives After Controversial Election

Italy, the Eurozone’s third largest economy, recently held national elections that resulted in a hung parliament and a widening divide between the country’s wealthy northern areas and the less affluent south. In a sign that global populism has not died, the anti-euro 5-Star Movement proved popular among voters in southern Italy.

While the results of Italy’s election did not produce an official governing regime and can be seen as controversial to outsiders, the iShares MSCI Italy Capped ETF (EWI

), the largest Italy exchange-traded fund (ETF) trading in the U.S., is up 3.63% since the election. (See also: Top 4 ETFs to Track European Stocks in 2018.)

Political controversy and volatility come at a potentially precarious time for EWI and Italian stocks, as the once moribund economy is showing signs of life. “The Italian economy surprised on the upside during 2017, expanding by 1.5%, the best performance since 2010,” said Markit. “This was positive after Italy faced a toxic climate in late-2016, with…

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