European stocks notably reached an 11-week closing high on Thursday as the U.S. released a better-than-expected inflation report for October.
Europe’s technology and real estate sectors skyrocketed 7.6% and 6.4%, respectively, on Thursday, marking their best day in over two years, Reuters reported. The slower-than-expected rise in U.S. consumer prices increased hopes that the Fed could slow interest rate hikes, with rates already reaching the highest level since 2008.
The October consumer price index rose 0.4% from the previous month, the Labor Department said in a release on Thursday. This was below economists’ expectations for an increase of 0.6%. Inflation rose 7.7% in October year-over-year — below projections for an increase of 7.9%.
Investors looking to bolster their portfolios by adding exposure to European stocks may consider the ALPS O’Shares Europe Quality Dividend ETF (OEUR), which has jumped 8.9% in the past five days, increasing 19.5% over a one-month period.
“OEUR offers a more fundamental-focused approach to investing in Europe that can be more appealing to risk-conscious investors than a market capitalization-weighted fund,” Todd Rosenbluth, head of research at VettaFi, said.
The fund is designed to provide efficient and transparent access to a portfolio of large-cap and mid-cap dividend-paying companies in Europe selected based on several fundamental metrics such as quality, low volatility, and dividend growth, according to SS&C ALPS Advisors.
OEUR has an emphasis on dividend quality to help avoid dividend cuts and suspensions and aims to provide strong performance with less risk, according to SS&C ALPS Advisors.
As of November 10, the fund offers the greatest exposure to companies domiciled in Switzerland (22.61%), France (17.99%), the United Kingdom (13.55%), Germany (12.82%), and the Netherlands (10.29%), according to VettaFi.
Other ETFs that offer exposure to European stocks include the iShares Europe ETF (IEV), the Franklin FTSE Europe ETF (FLEE), and the SPDR Portfolio Europe ETF (SPEU).
For more news, information, and strategy, visit the ETF Building Blocks Channel.
