An ETF to buy to profit from the complacency over Italy

Investors have become complacent over the dangers facing Italy. Paul Amery tips one exchange-traded fund to buy for when the reality finally hits home.

For those with long enough memories, the stalemate bequeathed by Italy's late-February election is nothing new. Only the actors on the stage change, with comedian Beppe Grillo's Five Star Movement the latest beneficiary of popular discontent with the Italian ruling elite.

But what has been surprising in the aftermath of the election is the relative stability of the financial markets. The yield on the ten-year Italian bond, a benchmark for the confidence of investors in Italy's ability to repay its debts, has stayed near its recent lows. At 4.7%, it's well below a peak of 7.5% recorded in late 2011.

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Paul Amery

Paul is a multi-award-winning journalist, currently an editor at New Money Review. He has contributed an array of money titles such as MoneyWeek, Financial Times, Financial News, The Times, Investment and Thomson Reuters. Paul is certified in investment management by CFA UK and he can speak more than five languages including English, French, Russian and Ukrainian. On MoneyWeek, Paul writes about funds such as ETFs and the stock market.