The European Central Bank’s loose monetary policies and quantitative easing program is having a positive effect on Eurozone economy, bolstering business growth and supporting the higher valuations in Europe-related exchange traded funds.

Year-to-date, the iShares MSCI EMU ETF (NYSEArca: EZU) and the SPDR EURO STOXX 50 (NYSEArca: FEZ), which both focus on Eurozone countries, gained 11.0% and 7.7%, respectively.

Additionally, the euro-currency hedged Deutsche X-trackers MSCI EMU Hedged Equity ETF (NYSEArca: DBEZ) increased 17.8%, iShares Currency Hedged MSCI EMU ETF (NYSEArca: HEZU) jumped 17.1% and WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ) advanced 17.0%. [Earnings Beats Help Support Europe ETFs’ Outlook]

Supporting the rapid returns, the Eurozone economy is picking up speed. The Markit Composite Purchasing Managers’ Index, which tracks manufacturing and services sector activity, touched 54.1 in June from 53.6 in May, expanding at its fastest clip in four years, reports Dhara Ranasinghe for CNBC. Readings above 50 indicate an expansion.

The quickening economic growth is attributed to the ECB’s 1 trillion euro, or $1.12 trillion, monetary stimulus, lower energy prices and a weaker euro currency.

PMI data from Germany and France, Europe’s two largest economies, also revealed a brighter outlook for the region. French PMI data show the manufacturing sector grew for the first time since April 2014. Meanwhile, German PMI jumped to 54.0 in June from 52.6 in May.

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