EWQ: France An Excellent Diversifier, Here's Why

The article argues that France-focused exposure via the iShares MSCI France ETF (EWQ) is an attractive, cost-efficient diversifier for long-term portfolios. It highlights a sizable valuation gap—France trades around a 17.85x P/E versus the S&P 500’s ~30x—supporting potential upside if the gap narrows. EWQ’s heavy industrial weighting (31%) and large positions in energy, luxury and aerospace (TotalEnergies, Schneider Electric, LVMH, Safran, Airbus) benefit from France’s low nuclear-driven energy costs and manufacturing competitiveness. The fund also offers a 2.6% yield, modest expense ratio (0.50%) and ~ $372M AUM. Overall the piece presents a constructive case for EWQ as a portfolio diversifier away from US tech, framing it as a value-oriented, bullish opportunity over the long term.