DBEU makes sense for a conservative investor that wants some Eurozone exposure without giving up exposure to the U.K. and Switzerland. Those countries combine for about 42% of DBEU’s weight, according to issuer data. The ETF also allocates some of its weight Nordic countries. Although it is not a pure euro hedged play, DBEU has gotten an ECB anticipation in the form of massive inflows as $128 million of the ETF’s $163.5 million in assets have come into the fund since the start of May.
Over that same period, the iShares MSCI EMU ETF (NYSEArca: EZU) and the SPDR EURO STOXX 50 (NYSEArca: FEZ) have taken in over $1 billion. Neither EZU nor FEZ are currency hedged ETFs, but each offers Eurozone purity in terms of country allocations.
France and Germany represent sizable chunks of both ETFs an average of 64.5%, but neither features any exposure to the U.K. or Switzerland. About $400 million changed hands in EZU Wednesday on triple the average turnover. [Great Diversified Europe ETFs]
WisdomTree Europe Hedged Equity Fund
Tom Lydon’s clients own shares of HEDJ.