In the Eurozone, the European Central Bank has been tackling slow growth and low inflation, which many observers argue are signals that the central bank could be forced to take on more quantitative easing to bolster growth. Additionally, in Japan, the Bank of Japan has been adhering to aggressive monetary policies while the government already implemented looser fiscal policies to promote growth.
However, with the ECB engaging in loose monetary policies that could dampen the euro currency against the U.S. dollar, investors can also consider euro-currency hedged ETFs, such as the aforementioned funds.
“Developed international stocks historically have delivered what we view as attractive investment returns at current valuations, especially in light of today’s relatively full U.S. equity valuations. Particularly with the Federal Reserve tightening but central banks in Europe and Japan maintaining a loose stance, we expect a macro tailwind for developed international stocks,” according to the Goldman note posted by Barron’s.
Deutsche X-trackers MSCI EMU Hedged Equity ETF