Europe ETFs: The Cup is Half-Full | ETF Trends

Europe’s debt problems have wreaked havoc with the stability of the markets and exchange traded funds (ETFs). After assessing the situation, some European countries may have come out ahead as economically favorable policies stay in effect

Karen Olney, chief European equity strategist at UBS, believes that the sovereign debt crisis could provide some positive results for many core European counties, according to Yahoo! Finance. Olney remarked that authorities are keeping rates low to help support growth in the periphery states, but countries like Germany, the Netherlands and France are also posting solid economic numbers as a result of the low rates. [Europe ETFs Fall As Riots Take Hold.]

  • iShares MSCI France (NYSEArca: EWQ)
  • iShares MSCI Germany (NYSEArca: EWG)
  • iShares MSCI Netherlands (NYSEArca: EWN)

Policies aimed at keeping interest rates low for a longer period, along with more asset purchases, may benefit the whole eurozone, adds Olney.

The European Commission President Jose Manuel Barroso on BBC described the situation in Europe as “fragile” and “vulnerable.” Barroso urges member states to attend the discussion on the forthcoming E.U. budget talks with an “open mind.” There is a need to set a modern and more efficient budget, but member states will have to come to a common ground on where the budget should be allocated. [Safe-Haven Seekers Boost Swiss Franc ETF.]

Around 40% of the budget is allocated to agriculture, but Barroso also commented on the need to invest in technology, infrastructure and improving overall investment opportunities.

For more information on Europe, visit our Europe category.

  • iShares S&P Europe 350 Index Fund (NYSEArca: IEV)
  • PowerShares FTSE RAFI Europe Portfolio (NYSEArca: PEF)
  • Vanguard Europe Pacific (NYSEArca: VEA)
  • ProShares Ultra MSCI Europe (NYSEArca: UPV)
  • ProShares UltraShort MSCI Europe (NYSEArca: EPV)

Max Chen contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.