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9 Investment Options For Traders Looking To Add Europe To Their Portfolio

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With the U.S. Federal Reserve considering a rate increase in December, investors are starting to become jittery as fears about a market-wide slide increase.

The uncertainty weighing on U.S. markets has caused many to begin looking further afield to regions like Europe, where the European Central Bank is moving in the opposite direction. In an effort to combat a stalling economy, the ECB has pledged to continue injecting funds into the region's financial system until things normalize and the continent returns to growth.

That means while U.S. firms struggle with higher debt costs and a stronger dollar, European firms will be poised for growth with more borrowing power and accommodative monetary policies. For many traders, adding Europe to their portfolio is a no-brainer, but deciding just how to invest poses a more difficult question.

Here's a look at 9 investment options for traders who want to add Europe to their portfolio.

Invest In Europe As A Whole

BlackRock European Dynamic Fund

The BlackRock European Dynamic Fund is an ETF that gives investors exposure to a variety of companies listed in Europe from a wide range of EU nations, with the exception of the UK.

The fund significantly outperformed the FTSE World Europe benchmark over the past year, with BlackRock posting 9 percent total returns and the FTSE World Europe benchmark falling 1.21 percent.

The fund allocates its investment primarily in Germany and Switzerland, and more than 40 percent of the companies making up BlackRock's fund are from the financial and healthcare sectors.

Vanguard FTSE Europe ETF (NYSE: VGK)

Perhaps the most widely known ETF among investors interested in Europe is the FTSE Europe ETF offered by Vanguard.

The fund tracks the broad performance of European stocks and includes a variety of countries and companies. While the fund encompasses several European nations, 32.2 percent is allocated to the UK and France, with Switzerland and Germany making up another roughly 40 percent of the fund's allocation.

Much like BlackRock, 23 percent of VGK is invested in the financial sector, but the consumer goods industry makes up the next largest allocation at 18.1 percent.

The fund has lost 5.36 percent over the past year amid all of Europe's financial issues, but some see the decline as a good time to buy as prices are lower.

Regional ETFs

iShares MSCI United Kingdom ETF (iShares Trust (NYSE: ...

/www.benzinga.com/general/biotech/15/11/5982624/9-investment-options-for-traders-looking-to-add-europe-to-their-portfo alt=9 Investment Options For Traders Looking To Add Europe To Their Portfolio>Full story available on Benzinga.com

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