As a currency hedged ETF, HEDJ stands to benefit if the euro weakens, but the strong common currency has not derailed HEDJ. Over the past year, the WisdomTree offering is up 10.6% even as FXE has gained 5.7%. [Different Approaches to Europe ETFs]

DBEU allocates over 42% of its combined weight to the U.K. and Switzerland and another combined 6.6% to Sweden and Denmark. None of those countries use the euro.

That means DBEU is exposed to two developed market currencies that arguably overvalued – the euro and the British pound. With the U.K. economy improving, it appears unlikely the Bank of England will take steps to actively weaken the pound, but if sterling does decline with British equities remaining firm, DBEU is among the ETFs that would benefit. [A Falling Pound Would Lift These ETFs]

db X-Trackers MSCI Europe Hedged Equity Fund Country Exposure

Table Courtesy: Deutsche Asset & Wealth Management

Tom Lydon’s clients own shares of HEDJ.