With U.S. markets rallying and considerable political uncertainty across Europe, the only thought many U.S. investors may have regarding Europe is whether the strong dollar means a summer vacation there should be in the works. While I always enjoy planning my next adventure, investors may want to consider Europe as an investment opportunity, not just a vacation spot. Indeed, after a year of considerable outflows, European equity exchange traded products (ETPs) started seeing inflows in late 2016, gathering over $6.8 billion globally since November (source: BlackRock, as of 1/31/2017). Despite significant political risk ahead, eurozone equities may be worth considering for three key reasons:
Stronger economic growth
Attractive valuations and light investor positioningprice-to-book (P/B) iShares MSCI Eurozone ETF ( EZU iShares Currency Hedged MSCI Eurozone ETF ( HEZU iShares Core MSCI Europe ETF ( IEUR Heidi Richardson is Head of Investment Strategy for U.S. iShares and a regular contributor to The Blog . Maria Eugenia Heyaca, an ETF Investment Strategist, contributed to this blog.
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