However, the SNB’s move indicates that it believes the ECB could further weaken its currency through loose monetary policies, which would make supporting the franc cap unsustainable. [Swissie Surge Felt Across ETF Landscape]
If the ECB will go through an aggressive quantitative easing program, the Eurozone market may see a similar liquidity-fueled growth support as we witnessed in the U.S. Still, potential investors should monitor currency risks as a weakening euro currency could weigh on U.S.-dollar-denominated.
Instead, investors can take a look at the Deutsche X-trackers MSCI EMU Hedged Equity ETF (NYSEArca: DBEZ), iShares Currency Hedged MSCI EMU ETF (NYSEArca: HEZU) and WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ), which track Eurozone equities and hedge against a weakening euro currency. [Europe ETFs to Invest Like a Millionaire]
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Max Chen contributed to this article.