Despite data that affirm the euro is overvalued to French, Italian and Spanish exporters and consumers, that scenario is not weighing on diversified Europe ETFs with significant exposure to those countries. For example, the SPDR EURO STOXX 50 Fund (NYSEArca: FEZ), which is one of this year’s top-performing diversified Europe ETFs, allocates almost 56% of its weight to France, Spain and Italy and has still managed an 18.1% gain. [Settling the Large-Cap Europe ETF Debate]
However, in single-country ETF terms, only EWP has outpaced EWG while the equivalent France and Italy funds have lagged the largest Germany ETF.
Hedge currency Europe ETFs have been solid though not spectacular performers this year. The db X-trackers MSCI Germany Hedged Equity Fund (NYSEArca: DBGR) is higher by 6.3% while the WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ), which is heavily tilted toward Germany, France and the Netherlands, is up 13.4%.
CurrencyShares Euro Trust
ETF Trends editorial team contributed to this post.