This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Three Easy ETFs to Access Europe

By Kevin Grewal, editorial director at

NEW YORK ( TheStreet) -- As strength in export growth and the euro help Europe into an economic recovery, many investors are turning their attention to the continent.

Growth in Germany and France, two of the largest economies in Europe, helped the Eurozone post a 0.4% GDP growth in the third quarter of 2009 and paved the path to similar growth for the remainder of the year. Additionally, European economies are benefiting from tight monetary policies and favorable projections in corporate earnings growth. Lastly, Europe offers investors the ability to diversify by gaining international exposure while reaping the benefits of investing in developed nations.

Although Europe seems to be positioned to emerge out of the global recession, it is equally important to keep in mind that unemployment rates in certain parts of the region are north of 10%, the European credit markets are still relatively tight and wages have remained flat. To add to these woes, governments in some parts of the region like Greece have overspent, which has some speculating that deflation may arise.

The easiest way to access Europe and potentially capitalize from its benefits is through the following ETFs:

  • Vanguard European Stock ETF (VGK), which carries an expense ratio of 0.12%, holds a blend of 500 large-cap stocks and gives broad-based exposure to the region;

  • iShares MSCI EMU Index (EZU), which carries an expense ratio of 0.52%, is heavily concentrated in France and Germany and focuses on large-cap value-oriented stocks;

  • WisdomTree Europe Dividend ETF (DEB), which carries an expense ratio of 0.48%, holds 220 stocks and focuses on dividend-paying companies enabling it to carry a yield of 8.09%.

When investing in these equities, it is important to consider the inherent risks that are involved. To help mitigate these risks, an exit strategy that takes into account current volatility and the direction of each equity to identify price points at which upward trends could come to an end is important. Such a strategy can be found at

-- Written By Kevin Grewal in Laguna Niguel, Calif.

Kevin Grewal serves as the editorial director and research analyst at The ETF Institute, which is the only independent organization providing financial professionals with certification, education, and training pertaining to exchange-traded funds (ETFs). Additionally, he serves as the editorial director at where he focuses on mitigating risks and implementing exit strategies to preserve equity. Prior to this, Grewal was an analyst at a small hedge fund where he constructed portfolios dealing with stock lending, exchange-traded funds, arbitrage mechanisms and alternative investments. He is an expert at dealing with ETFs and holds a bachelor's degree from the University of California along with a MBA from the California State University, Fullerton.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
EZU $38.79 -0.94%
VGK $54.84 -0.99%
AAPL $124.24 0.70%
FB $83.01 0.11%
GOOG $555.17 -0.65%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs