Weakness in the volatile PIIGS equity markets is sapping EZU’s relative strength.
“It is also interesting how the relative strength breakdown was an early indication of the price weakness to follow,” notes J. Beck.
Investors have not been shy about pulling capital from EZU. The ETF saw redemptions of $921.4 million last week. The ETF has lost $1.6 billion this quarter, but EZU is far from the only Europe ETF investors are departing.
The Vanguard FTSE Europe ETF (NYSEArca: VGK) has lost nearly $787 million this quarter. VGK and EZU are down 7% and 9% in the current quarter, respectively. [Some Europe ETFs Resist Outflows]
iShares MSCI EMU ETF
ETF Trends editorial team contributed to this post.