Betting on Non-Euro EuropeIn recent weeks, Europe has been split into two in the eyes of many investors: the euro zone and economies that use a non-euro currency. One of the best ways to bet against the former is by shorting the iShares MSCI EMU Index Fund (EZU), which includes stocks of EU members that have adopted the euro as their currency. One of the best ways to bet on the latter is the Global X FTSE Nordic 30 ETF (GXF), which offers exposure to Sweden, Denmark, Norway, and Finland (of the group, only Finland has adopted the euro).
Although most major currencies have slipped relative to the dollar in recent weeks, the "euro drag" has weighed heavily on EZU. The EMU fund has lagged behind its Nordic rival over the last month, delivering a positive return to those who shorted EZU and bought GXF:
Disclosure: No positions at time of writing.