Additionally, more investors are flocking to the currency-hedged theme. DBEU has attracted almost $200 million in new assets since the start of the third quarter and has more than doubled in size just this year. In contrast, VGK has shed $2 billion, the most ever, over the past three months.
With the Eurozone economic data showing continued weakness, a rising number of economists predict that the ECB will enact some type of quantitative easing to help promote growth. For instance, Germany, the Eurozone’s largest economy, is experiencing slowing export growth, lower industrial output and a decline in business confidence, The Guardian reports. Further ECB action could help prevent the European Union from falling into a triple-dip recession.
Potential investors should be aware that DBEU includes broad European exposure. The United Kingdom and Switzerland make up a combined 43.2% weight in the ETF’s portfolio.
Financial advisors who are interested in learning more about investing in currency-hedged ETF strategies can register for the Thursday, October 16 webcast here.