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Vanguard FTSE Europe ETF (VGK)

  • Dec. 3, 2012, 12:47 PM
    Among JPMorgan's (JPM) 9 market themes for 2013 is its belief European equities will outperform the U.S. as fiscal issues which have dogged the Continent for so long now move across the pond. It's more continuation play than contrarian play as Europe (VGK) has bested the U.S. (SPY) by nearly 300 basis points thus far in 2012.
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  • Nov. 29, 2012, 11:54 AM
    Thankfully closing before the House Speaker took the mic, Europe closes sharply higher, catching up to and surpassing yesterday's rally in the States. The Stoxx 50 +1.3%, led by Italy +2.8%. The euro flat at $1.2954. A quick check of the Vanguard MSCI Europe ETF (VGK) finds it ahead 13.4% YTD, exactly matching the SPY.
  • Oct. 26, 2012, 11:59 AM
    European shares manage gains to end the week despite a brief flutter on comments from the German finmin: "Greece's eurozone membership has not been decided." Stoxx 50 +0.8%, led by France +0.8%. Spain lags, closing -0.2%. Since Draghi's "whatever it takes" comments in late July, Europe (as represented by VGK) has gained 8.5%, beating the S&P 500 by 500 basis points.
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  • Oct. 23, 2012, 7:11 AM
    Just maybe the French economy has not bottomed. Industrial confidence declined to 85 in October, the lowest read since August 2009. European shares are at session lows, the Stoxx 50 -1.4% in what seems to be a continuation of yesterday's selling - cut short by a furious late rally in the U.S. The euro -0.4% to $1.3000. Spain: Downgrades, and missed targets, but that's not news.
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  • Aug. 28, 2012, 9:47 AM
    Ahead of the times? WisdomTree is changing the broad international focus of its HEDJ ETF into one offering exposure solely to European exporters (while hedging against euro fluctuations).
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  • Aug. 20, 2012, 9:04 PM
    More on the ECB: Mario Draghi appears to have won over at least one Bundesbank member as Jorg Asmussen tells a German newspaper high peripheral bond yields reflect exchange rate risk, thus "our monetary policy (is) achieved only incompletely." It's crucial wording, suggesting he's okay with ECB bond purchases as long as they're couched in saving EMU, not financing Spanish and Italian governments. "We are working on (a) new program and will deal with it (at the next policy meeting)."
  • Aug. 20, 2012, 8:39 AM
    Goldman makes a big call on an EU comeback, recommending going long a basket of European firms with high domestic sales exposure against a short of companies with high U.S. exposure. Jeff Gundlach's May recommendation of long Spain vs. short U.S. is working, EWP outperforming SPY by 400 bps since.
  • Aug. 20, 2012, 6:41 AM
    The Bundesbank warns (in its monthly report) moves to share "solvency risks" in the eurozone should be decided by governments, not the ECB. The comments follow speculation the ECB is considering intervention to cap spreads between peripheral and German bond yields by buying unlimited amounts of government debt. It's a plan Germany's finance ministry denies any knowledge of but says would be "very problematic."
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  • Aug. 19, 2012, 6:52 PM
    The ECB is considering capping peripheral bond yields by stepping in to buy the debt when its spread to German paper rises above a certain threshold, reports Der Spiegel. Draghi has complained that monetary policy transmission is broken, i.e., the ECB eases yet financial conditions tighten further in the periphery - this gives him his opening to buy government debt. A decision could come at the bank's September policy meeting.
  • Aug. 13, 2012, 11:50 AM
    Hedge funds capitulate, with data suggesting they are covering shorts on European stocks at the fastest rate since the epic bottom of early 2009. Likely priced in on the bear side are faltering economies and shrinking corporate profits. Maybe priced in on the bull side are further supportive official actions.
  • Aug. 3, 2012, 7:13 AM
    European shares gain back nearly all (and in some countries more) of yesterday's sharp sell-off as the implications of yesterday's ECB meeting become clear. Yes, there was no immediate candy, but the EU is not the U.S. and the ECB is not the Fed. These things take time, and action is coming. Draghi:  "Over the coming weeks, we will design the appropriate modalities for such policy measures."
  • Aug. 2, 2012, 4:52 PM
    The ECB recognizes it is no longer "properly in control of monetary conditions across the eurozone," writes HSBC's Stephen King in an outstanding piece deserving to be the day's final word on the subject. The good news is the bank is now busily working on ways to fix this. Investors may want to rethink today's gloomy response to such, even if improved monetary conditions are no panacea.
  • Aug. 2, 2012, 1:30 PM
    "Draghi delivers," writes Ambrose Evans-Pritchard in a contrarian take on the ECB press conference. By seeking instant gratification, markets missed the point that work is underway on the sort of programs hoped for. "Over the coming weeks, we will design the appropriate modalities for such policy measures," said Draghi. Is anyone listening?
  • Aug. 2, 2012, 6:54 AM
    Giving risk assets a boost is a report in a German paper suggesting the ECB and the EFSF are planning to coordinate purchases of Spanish and Italian debt. Despite German opposition, Draghi has garnered a majority in favor of bond purchases on the ECB governing council, but the plan's introduction may wait until September (not today's meeting).
  • Aug. 1, 2012, 4:04 AM
    Eurozone manufacturing PMI comes in at a final 44.0 for July, vs. the flash estimate of 44.1 and down from 45.1 in June. "Output fell at the fastest rate since mid-2009... Manufacturing therefore looks to be on course to act as a major drag on economic growth in the third quarter, as the Eurozone faces a deepening slide back into recession." (PR .pdf)
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  • Jul. 31, 2012, 2:46 PM
    Investors hoping for the bond-buying bazooka to be brought out at this Thursday's ECB meeting are "getting ahead of themselves," writes Vince Cignarella. Draghi's hint at such was unilateral and he still faces big obstacles - namely the Northern crowd on the Governing Council (led by the Germans). At best Thursday will bring a 50 bp cut in the benchmark rate (to 0.25%) and another LTRO.
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VGK Description
Vanguard FTSE Europe ETF seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in the major markets of Europe.
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