NEW YORK ( TheStreet) -- After struggling for years, European stocks are beginning to recover. This year iShares Europe (IEV) rose 19.5%. Investors have taken notice. Vanguard FTSE Europe ETF (VGK) attracted inflows of $6 billion in 2013, a large sum for an ETF with $12.4 billion in assets. A total of $3.7 billion flowed into iShares MSCI EMU (EZU), which has $6.6 billion in assets.Positive news triggered the rally. The eurozone's GDP grew 0.3% in the second quarter of 2013, an indication that the protracted recession had ended. Now the European Union projects that GDP will grow 1.1% in 2014. While the recovery remains fragile, there is good reason to think that the rebound can continue, says Shep Perkins, portfolio manager of Putnam Global Equity (PEQUX), a mutual fund. In Spain and some other countries, the unemployment rate has begun to fall. "The unemployment problem is still horrendous, but consumer confidence is starting to recover from a low level," he says.
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