European Equities Are on the Move Amid Reopening Economies

The prospects of reopening Europe’s economy sent equities higher to start the month of June. European traders found solace in U.S. President Donald Trump’s latest comments that no adverse action would be taken against China as of yet regarding the new national security law in Hong Kong.

The European Union’s actions to create a 750 billion euro or $826.5 billion recovery fund to help the ailing economy for the effects of the coronavirus pandemic also boosted the euro. The euro reached its highest level since the middle of March during Monday’s trading session.

For the exchange-traded fund (ETF) investor, they may want to keep an eye on Europe-focused funds. Here are three funds to check out

  1. Vanguard FTSE Europe Index Fund ETF Shares (NYSEArca: VGK): seeks to track the performance of a benchmark index that measures the investment return of stocks issued by companies located in the major markets of Europe. The fund employs an indexing investment approach by investing all, or substantially all, of its assets in the common stocks included in the FTSE Developed Europe All Cap Index.
  2. iShares MSCI Eurozone ETF (BATS: EZU): seeks to track the investment results of the MSCI EMU Index composed of large- and mid-capitalization equities from developed market countries that use the euro as their official currency. The index consists of stocks from the following 10 developed market countries: Austria, Belgium, Finland, France, Germany, Ireland, Italy, the Netherlands, Portugal, and Spain.
  3. iShares Core MSCI Europe ETF (NYSEArca: IEUR): seeks to track the investment results of the MSCI Europe IMI. The index is a free float-adjusted market capitalization-weighted index which consists of securities from the following 15 developed market countries or regions: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.

Another fund to look at for actively managed strategies is the Goldman Sachs ActiveBeta Europe Equity ETF (GSEU). The fund seeks to provide investment results that closely correspond to the performance of the Goldman Sachs ActiveBeta® Europe Equity Index.

The fund seeks to achieve its investment objective by investing at least 80% of its assets (exclusive of collateral held from securities lending) in securities included in its underlying index, in depositary receipts representing securities included in its underlying index and in underlying stocks in respect of depositary receipts included in its underlying index. The index is designed to deliver exposure to equity securities of developed markets issuers in Europe.

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