Being long European stocks and exchange traded funds has not been a rewarding trade in recent weeks. Not with the CurrencyShares Euro Trust (NYSE: FXE) rising 2.1 percent over the past month as the euro has become something of a safe-haven trade.
European stocks have been plagued by, among other downbeat catalysts, heightened speculation that Greece will depart the Eurozone (though that concern has ebbed for the moment) and the collapse of Chinese equity markets and slowing economic growth there. In fact, European stocks now trade at lower valuations than they did when the European Central Bank unveiled its quantitative easing effort earlier this year.
Still, there are some green shoots that could increase the allure of currency hedged exchange traded funds, such as the Deutsche X-Trackers MSCI Europe Hedged Equity ETF (NYSE: DBEU) and the Deutsche X-trackers MSCI Eurozone Hedged Equity ETF (NYSE: DBEZ).
Related Link: An ETF That Gains As China Loses
“Unemployment in the region unexpectedly fell, while German manufacturing expanded at a faster pace. Economists project Europe's ...
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