SEE MORE: Look to Currency Hedged ETFs as the Euro Continues to Weaken

“While European ETFs may not have outperformed some of the funds tracking Latin American markets, trading European funds against the U.S. could be successful going into 2017. He cited a trade like getting long the German DAX index and short the Dow,” Boris Schlossberg, managing director of foreign exchange strategy for BK Asset Management told CNBC.

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Many traders are increasing bets that the U.S. Federal Reserve could hike interest rates in December, further strengthening the U.S. dollar against the euro currency. Consequently, investors who expect in an improving Eurozone economy, along with a depreciating euro currency, should consider currency-hedged ETF options to gain exposure to the region.

For instance, the Deutsche X-trackers MSCI EMU Hedged Equity ETF (NYSEArca: DBEZ), iShares Currency Hedged MSCI EMU ETF (NYSEArca: HEZU) and the aforemetioned HEDJ target Eurozone countries but try to diminish the negative effects of a depreciating EUR – a weakening foreign currency would normally reduce returns on overseas securities when converted back into a stronger U.S. dollar.

For more information on the European markets, visit our Europe category.