DBEZ holds more than 700 stocks and allocates about 60% of its combined weight to Germany and France, the two largest Eurozone economies. The Netherlands and Spain combine for almost 20%. The ETF allocates about 19% of its weight to financial services stocks and over 15% to industrial names. DBEZ is also levered to the recovering European consumer with a 13.7% weight to consumer discretionary stocks.
Last week, the euro fell to its lowest levels of 2018 against the dollar, but some market observers fear the euro’s decline was sparked by disappointing economic data. However, some believe the recent slowdown is natural and not cause for alarm.
The European Central Bank’s chief economist, Peter Praet said Monday, “There is so far no evidence that the moderation in the pace of economic expansion reflects a durable softening in demand,” reports Bloomberg. “Recent information remains consistent with a solid and broad-based expansion in domestic demand.”
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