“What is it that the EU has done so well to have their best year of economic growth since 2007? The answer, surprisingly, is: not much,” said Direxion. “Mismatched ruling parties and austerity measures aside, the biggest asset the European Union has recently had over its global contemporaries is simply exhibiting a measure of stability. Brexit is the most obvious example of the European mainland’s relative constancy.”

EURL’s underlying index does not focus exclusively on Eurozone economies. The benchmark allocates over 32% of its combined weight to the U.K. and Switzerland. Germany and France, the Eurozone’s two largest economies, also combine for 32% of the fund’s weight.

Strengthening European banks also bolster the case for the region’s equity and fixed income assets.

“European financials stand to come out very appealing as national bond prices between the member nations begin closing ranks. That, in addition to signs of stability in the once failing Greek economy, have made the EU look almost serene when compared to the volatile hysterics overlaying U.S. markets,” according to Direxion.

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