VGK closed just below $61 on Tuesday, more than 31% below its all-time set in 2008, indicating the ETF could have plenty of room ahead of it with which to notch further upside. Even a move above $65 would be significant considering VGK has not traded above that area in more than six years.
As for expecting a major rally out of VGK if the ECB does make an easing announcement, investors should be careful because the U.K. and France combine for 45.7% of VGK’s weight. Sweden and Denmark combine for another 7%, meaning four of VGK’s top-10 country weights, a quartet that combines for almost 53% of the ETF, are not Eurozone members. [ETFs Pricing in Good News From ECB]
Vanguard FTSE Europe ETF
ETF Trends editorial team contributed to this post.