Consequently, many are turning to currency-hedged Europe-focused ETFs to capture a more pure play on the underlying markets without worrying about the negative effects of a diminishing euro currency on their investments – a weaker euro currency translates to lower U.S.-dollar-denominated returns.
Maier argues that the hedged-Europe trade will continue to make sense as long as the ECB supports the economy through loose monetary policies, pointing to a 12 to 18 month outlook.
Deutsche X-trackers MSCI EMU Hedged Equity ETF
For more information on Europe, visit our Europe category.
Max Chen contributed to this article.