Despite almost clawing back most of the losses from earlier this year, Europe region-specific exchange traded funds remain one of the most unloved investment themes.
Investors continue to dump European stocks, which plunged 17% at the start of the year and are now near break even, even after the broader global market rally, reports Manisha Jha for Bloomberg.
According to a Bank of America Survey, money managers have taken money out of European equity funds for seven straight weeks, the longest stretch since October 2014.
For instance, the currency-hedged WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ) was the third most unwanted ETF of the year, experiencing $2.1 billion in net redemptions so far this quarter, according to ETF.com. The outflows from the currency-hedged Europe ETF may have been exacerbated after the more dovish Federal Reserve stance weighed on the U.S. dollar, with the euro currency appreciating over 3% against the greenback.
Additionally, the non-currency-hedged iShares MSCI EMU ETF (NYSEArca: EZU) saw $1.3 billion in outflows year-to-date.[related_stories]