6 ETFs to Invest in June
The S&P 500 roared to its best May in over 30 years, what???s next for June?
Europe ETF (EZU) Hits New 52-Week High
EZU hits a 52-week high and is up nearly 30% from its low, as Eurozone growth and easing trade tensions fuel investor interest.
EZU: European Equity Alpha Likely To Continue
I have a buy rating on EZU, driven by strong valuation, bullish technicals, and robust inflows into European equities. EZU has outperformed the S&P 500 YTD, with attractive fundamentals: low P/E, solid growth, and a higher dividend yield. The ETF offers broad sector diversification, though near-term volatility is possible due to seasonal weakness in June.
EZU: Attractive Valuation Given Its Growth Prospect
iShares MSCI Eurozone ETF offers a diversified portfolio of Eurozone large and mid-cap stocks, with an expense ratio of 0.51%. EZU has underperformed the S&P 500 due to lower exposure to the technology sector but shows steady performance and balanced sector allocation. Earnings growth for EZU's portfolio is expected to accelerate in 2025 and 2026, supported by lower inflation and favorable monetary policy in the Euro area.
EZU: Opportunity On The Back Of ECB Rate Cuts
EZU (iShares MSCI Eurozone ETF) and FEZ (SPDR EURO STOXX 50 ETF) are two ETFs that provide exposure to European equities, but differ in their holdings. Recent ECB rate cuts make it a good time to evaluate these European offerings, as they've both performed well on a trailing 1-year basis. FEZ has slightly outperformed EZU over the last 5 years and exhibited marginally lower volatility. However, EZU's broader holdings may benefit ECB rate cut and a more "risk-on" environment.
Buyback Spree Adds Fuel to European Stock Rally
European companies are increasingly relying on share buybacks to return cash to shareholders, a sign of confidence about their prospects that is helping lift stock markets to new highs.
5 Reasons to Bet on Eurozone ETFs Now
Chances of ECB rate cuts in June, falling inflation and improving growth outlook, turnaround of the ailing German economy, improving corporate earnings backdrop and cheaper valuation have made Euro zone ETFs lucrative bets currently.
