European Stocks Quiet as 2018 Looms

In the fourth quarter, EZU has added $1.44 billion in new assets while IEV and IEUR have bled about $588 million combined.

Investors who believe the euro currency could weaken after its recent rally and are bullish on the Eurozone’s outlook can turn to currency-hedged ETF options, such as the the Deutsche X-trackers MSCI EMU Hedged Equity ETF (NYSEArca: DBEZ), iShares Currency Hedged MSCI EMU ETF (NYSEArca: HEZU) and WisdomTree Europe Hedged Equity Fund (NYSEArca: HEDJ). These currency-hedged Europe ETFs may outperform non-hedged Europe funds if the euro depreciates against the U.S. dollar.

The anti-euro government sentiment and flareups of nationalism have died down as no major party is pushing to exit the Eurozone. French President Emmanuel Macron is expected to enact a pro-growth agenda with the help of a majority backing in parliament, with labor reforms already off to a good start.

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