Europe is on Sale

By on September 14, 2011

Horrible news headlines emanating for the euro region has, along with a collapsing currency, created seeming bargains in this slow-growing, but normally stable region of the world. Things have gotten so bad that European stocks as a whole yield over 5%; see the Vanguard MSCI European ETF (VGK), which offers great diversification.

Jerold Leslie, writing for thestreet.com, has written about what Morningstar ETF analyst Timothy Strauts considers are several less risky options for investment in Europe. They include:

  • IShares MSCI Europe Financials Index ETF (EUFN)
  • IShares S&P Europe 350 Index ETF (IEV)
  • SPDR Barclays Capital International Treasury Bond ETF (BWX)
  • IShares MSCI United Kingdom Index ETF (EWU)
  • Autoliv (ALV) stock; American Depositary Receipt 

SMA Comment:The international treasury bond ETF seems to be a lower-risk way to play this region of the world.  I would stick with the Vanguard fund which has a very low expense ratio.

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