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Europe, not just a vacation opportunity

Thierry Hennet / Getty Images
Thierry Hennet / Getty Images

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

Earnings momentum

Attractive valuations and light investor positioning

price-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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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