Five Developed Market ETFs Stinking Up The Joint

The market's recent malaise has shown investors many things and one of them is that developed markets have offered little in the way of refuge. Even excluding the U.S. from the conversation, developed market ETFs have been disappointing as a group lately. Whether it's slack economic growth, a concerning employment situation or sovereign debt issues, these developed market ETFs just aren't making the cut these days. Look elsewhere, including emerging markets, to get your international groove on. Vanguard European ETF VGK: Hey, at least VGK has a small expense ratio. It's a good thing too because one should not be docked for owning this ETF. VGK is down more than 14% in the past three months and it's easy to understand why. The devil is in the details and the details are the countries VGK offers exposure to. Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the U.K. Ugh. iShares MSCI Switzerland Index Fund EWL: Switzerland should have been the ideal place for investors to hide out during these rocky times. And it has been via the Swiss franc. The franc's strength has plagued Switzerland's exporters, a critical component of that country's economy. As a result, EWL has slid more than 10% in the past month. If interventions to weaken the franc don't work, EWL will continue to languish. IQ Canada Small Cap ETF CNDA: With an almost 43% weight to materials stocks, CNDA should have been a winner as gold moved higher in recent weeks, but that has not been the case. The ETF has a weight of more than 29% to energy names (not good at the moment) and concerns about the Canadian economy at large are becoming an issue. This is an ETF we want to like, but just can't pull the trigger on at the moment. Global X Norway ETF NORW: Like EWL, NORW should have been an ideal country-specific ETF with which to play some defense recently. The opposite has proven true. NORW was flirting with $18 in May. Today, it trades around $13.50 and that tumble has occurred while Statoil STO, Norway's largest oil company and a top NORW holding, has announced two major North Sea discoveries. All that said, NORW's decline has been so viscous and support seems firm around at $12.50, so there might be some value here. iShares MSCI Japan Index Fund EWJ: First, it was the run to the yen as a safe haven. Now, it's a downgrade from Moody's. All of EWJ's post-earthquake gains have evaporated and the ETF is just pennies away from retreating to the March lows seen immediately following the natural disasters that devastated Japan. The problem with EWJ is that Japan's real devastation might just be its economy.