In addition to considering European financials, investors may also want to have a look at the region’s small-caps with ETFs like the iShares MSCI EAFE Small-Cap ETF (NYSEArca: SCZ).
SCZ “boast s a price-to-book of 2.85, dividend yield 2.75% as well as less beta volatility than the S&P 500. The current price is solidly above both a 50-day and a 200-day moving average. The 19% gains off of the June lows aren’t too shabby either,” wrote Gordon.
SCZ allocates over 49% of its combined weight to Japan and the U.K., but the ETF does have Eurozone exposure via Germany, France and Italy.
iShares MSCI EAFE Small-Cap ETF
ETF Trends editorial team contributed to this post.