Matt Hougan, CEO of Inside ETFs, says there are 42 Europe-centric ETFs, but almost no sector ETFs for European companies. There are two big decisions when it comes to buying Europe-specific stock ETFs, he says: “The first is, Europe or euro zone?”
The second big decision when investing in Europe is whether or not to buy a hedged fund.
A hedged fund, which minimizes the effect of currency swings and generally is better in periods when the dollar is strong.
“Currency is so volatile,” says Matt McAleer, Cumberland’s managing director and portfolio manager, “that if you are hedged for a long period of time, you can be right on the underlying equity but still walk out of the door with no money.”
Read the full piece on Barron’s: http://www.barrons.com/articles/how-to-make-sense-of-europe-etfs-1491021022