Risks Linger for Europe ETFs | Page 2 of 2 | ETF Trends

“Unemployment remains high, austerity measures are still sapping growth for the likes of Italy and Greece, while the French government’s inability to spur growth are all reasons to be wary of the euro area this year,” Ishaq Siddiqi, a market strategist at ETX Capital, wrote in a note.

Popular diversified Europe ETFs, such as the VGK and the iShares Europe ETF (NYSEArca: IEV), feature large combined allocations to the U.K. and Switzerland, which diminish some of the risks associated with investing in the Eurozone.

On the other hand, the SPDR EURO STOXX 50 Fund (NYSEArca: FEZ) excludes the U.K. and Switzerland in favor of a heavy tilt toward Eurozone countries, France, Germany, Italy and Spain.

Vanguard FTSE Europe ETF

For more information on Europe, visit our Europe category.