5 Developed Market ETFs Down 25% or More in 2011

Everyone already knows that 2011 has been an awful year for emerging markets equities and ETFs, but did you know just how bad developed markets have performed this year? And we're not just talking about the U.S., Japan or one of the PIIGS. In building a list of developed market ETFs down 25% year-to-date there was no shortage of constituents, but a couple of members of this list may just surprise you. iShares MSCI Sweden Index Fund EWD: This is one is a surprise for multiple reasons. First, Sweden is not a Euro zone country. Second, Sweden's overall economy and its property market are arguably the envy of most of developed Europe, Euro zone or not. Third, Sweden has exceptional public finances compared to most other European countries and is not implementing any austerity measures because it doesn't need to. However, being painted with the Europe brush has the ETF down 27% year-to-date. Global X Norway ETF NORW: Again, another surprise, though not as much as EWD. The Norwegian krone has been one of the world's steadiest currencies this year and Norway has Europe's lowest unemployment rate. Oil has been part of the problem as falling crude prices have weighed on energy-heavy NORW. Still, a 27% drop for this ETF seems far too severe given Norway's overall economic health. IShares MSCI Netherlands Investable Market Index Fund EWN: Heading into Wednesday, EWN was down just under 25%, but we're talking a matter of pennies here. While the Netherlands is far more stable than any of the PIIGS, EWN has been punished by guilt by association. Even with that, the Dutch finance minister warned on Tuesday that 2012 could be a tough year for the Dutch economy and more budget cuts weren't ruled out, Reuters reported. IndexIQ Canada Small-Cap ETF CNDA: The combination of small caps and a heavy allocation to energy and materials names has been CNDA's undoing this year. In a “risk off” environment, this isn't the type of ETF fund managers are going to be running to buy. iShares MSCI Israel Capped Investable Market Index Fund EIS: Tied with CNDA for the worst year-to-date performance on this list, EIS has plunged 35% in 2011. Europe's debt crisis and violence throughout the Middle East have been culprits here. A violation of support at $39 takes EIS to $35. An almost 34% combined weighting to healthcare and telecom names should make EIS a value play, but an almost 28% allocation to financials is problematic.