Seeking Alpha
Profile| Send Message|
( followers)  

Europe will not stay down forever. The US will not be the clear market of choice forever. Depressed markets have substantial price recovery potential when their trend reverses from down to up. Here is a look at some of the potentially more interesting European ETFs and a couple of European mutual funds.

The fund is not totally inclusive. Mutual funds are for the most part excluded, in favor of ETFs. However, active management of a mutual fund may be advantageous.

To make the list a fund must outperform the S&P 500 proxy SPY in at least one of these periods: 10 years, 5 years, 3 years, 1 year or YTD 2012 or 3 months; and the fund must have at least $10 million in assets.

Many funds outperformed over 10 years. No funds outperformed over 5 years and 3 years. Some funds outperformed YTD, and more funds outperformed over 3 months.

Here's the data - except for capture ratios, SPY is included in the data table for contrast.

Figure 1: Rolling Returns and Yield

(click to enlarge)

Figure 2: Calendar Yields

(click to enlarge)

Figure 3: Sharpe Ratio and Capture Ratio Spreads for 1, 3, 5 and 10 Years

(click to enlarge)

Figure 4: Historical Valuation Multiples

(click to enlarge)

Figure 5: Forward Valuation Multiples

(click to enlarge)

Fund Names and Symbols in Alpha Order By Symbol

WisdomTree Europe SmallCap DividendDFE
iShares MSCI Poland Investable Mkt IndexEPOL
iShares MSCI Sweden IndexEWD
iShares MSCI Germany IndexEWG
iShares MSCI Belgium Investable Mkt IdxEWK
iShares MSCI Switzerland IndexEWL
iShares MSCI Netherlands Invstbl Mkt IdxEWN
iShares MSCI Austria Investable Mkt IdxEWO
iShares MSCI Spain IndexEWP
iShares MSCI France IndexEWQ
iShares MSCI United Kingdom IndexEWU
iShares MSCI EMU IndexEZU
First Trust STOXX Euro Select Div IdxFDD
SPDR STOXX Europe 50FEU
SPDR EURO STOXX 50FEZ
Fidelity EuropeFIEUX
Fidelity NordicFNORX
iShares S&P Europe 350 IndexIEV
Global X Norway ETFNORW
Market Vectors Poland ETFPLND
SPDR S&P RussiaRBL
Market Vectors Russia ETFRSX
T. Rowe Price Emerging Europe FundTREMX
Vanguard MSCI Europe ETFVGK

Disclosure: StopAlerts is part of QVM Group LLC. QVM has positions in SPY as of the creation date of this article (October 4, 2012). We certify that except as cited herein, this is our work product. We received no compensation or other inducement from any party to produce this article, and are not compensated by Seeking Alpha in any way relating to this article.

General Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on the QVM site available here.

Source: Keeping An Eye On European Funds For Possible Future Re-Entry