Risks Linger for Europe ETFs | ETF Trends

European stocks and exchange traded funds have rebounded as the Eurozone climbs out of a debt induced financial crisis. However, investors shouldn’t get too excited as European Central Bank President Mario Draghi warns about persistent hurdles in the economy.

The Vanguard FTSE Europe ETF (NYSEArca: VGK) slipped 0.3% Thursday. The ETF gained 22.5% over the past year.

Draghi stated that the Eurozone is still fighting with the debt crisis, even after some peripheral states return to the debt market and European assets rallied, reports Namitha Jagadeesh for Bloomberg.

“It’s a recovery that’s gone from being based exclusively on export growth” to one that is “very gradually extending into domestic demand,” Draghi said. “But it’s still premature to declare any victory.”

On Thursday, the ECB announced that it will keep the main refinancing rate at 0.25%.

“The Governing Council strongly emphasizes that it will maintain an accommodative stance of monetary policy for as long as necessary,” Draghi said in a statement.

The ECB is maintaining its accommodative stance in light of ongoing problems in the Eurozone economy.