European ETFs Posting Strong Returns

Includes: EZU, IEV, VGK
by: MyPlanIQ

Investors are paying close attention to the European market, mostly due to the Greek Debt Crisis and its effect on the eurozone.

The European debt crisis has wide impact on European ETFs, especially on the volatility of equities around the world which are impacted by the progress of the European crisis, and the financial markets involved. Although it is a eurozone crisis, this region affects short and medium term returns around the world.

Europe Equities




1 Yr

3 Yr

5 Yr

Avg. Volume(K)

1 Yr Sharpe

Vanguard MSCI European ETF







iShares S&P Europe 350







iShares MSCI EMU Index







All European ETFs are posting strong returns as they benefit from the weaker dollar and some strengthening economies.

The Vanguard MSCI European ETF (NYSEARCA:VGK) has strong one-year sharpe and the best returns in the long term. This ETF seeks investments of companies in the majority of markets in Europe, with high risk and returns, but showing good performance when a benchmark is made.

iShares S&P Europe 350 (NYSEARCA:IEV) is in second place but still has interesting numbers in the short term. This asset seeks investments in 350 stocks over 10 market sectors, especially in the financial (22%), Consumer Staples (13%), Industrial (11%) and energy (11%) sectors, in the U.K., France, Germany and Switzerland.

The iShares MSCI EMU Index (BATS:EZU) has still good returns in the short run, attached with high risks, and is questionable going forward. This fund looks for assets and public trade securities in the European Monetary Union markets, in the Financial (23%), Industrial (14%) and Consumer Discretionary (11%) sectors, mostly in France, Germany and Spain.

Investing in European equities has many advantages thanks to its developed market and size, but right now it might be better to wait for more positive signs after the ongoing financial crisis and its resolution.

Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical. I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.