Checkout The Chart: A Thing For Austria

One could opt for a bunch of flowery language regarding what it's like to be playing ETFs that track European countries from the long side these days. Exclude the Nordic region and one is left with a batch of potential headaches. The options for avoiding the PIIGS calamity have been predictable. An investor can opt for the bulk and dependability of Germany through the iShares MSCI Germany Index Fund EWG or the “once again, we're not involved in this mess” play that is the iShares MSCI Switzerland Index Fund EWL. What about Austria? Checkout the chart on the iShares MSCI Austria Investable Market Index Fund EWO. Attention class: This what they mean when they talk about higher highs and high lows. The result is a very nice, very strong up channel for a Europe-specific ETF that is decidedly un-PIIGS. In the past year, EWO's performance has mirrored that of EWG and EWL. That's no hyperbole. Lay the three charts over each other and it will look like there is only one line, that's how tight the correlation has been. No surprise here, but EWO has offered double the returns of the iShares MSCI Italy Index Fund EWI and quadruple the returns of the iShares MSCI Spain Index Fund EWP in the past year. Now here's a surprise: EWO has outperformed the Market Vectors Russia ETF RSX by about 5%. And that comes from an ETF tracking an EU country with a weight of nearly 40% to financials! Again, checkout the chart. If EWO moves above resistance at $25, it could see the high 20s by year-end. See, Austria, is known for more than just being a landlocked Olympic skier factory.