As the U.K. continues its Brexit negotiations with the European Union (EU), investors will likely see increased momentum from EU countries, as the euro strengthens and big businesses move their primary operations to EU countries in order to maintain business agreements. Some large-cap U.K. companies are also expected to outperform, as top companies take greater advantage of established business in the U.K.

Within this climate, Europe offers numerous investment opportunities, relying on multiple indexes that may be tracked for European equity exposure. Below are some of the most interesting ETFs, that are leading this effort. The funds were chosen on the basis of performance, assets under management and comprehensive market exposure. Funds do not include leveraged ETFs.

Key Takeaways

  • The current climate in the U.K., which is in continued Brexit negotiations with the European Union (EU), is providing a bevy of interesting ETF that tracking European equity indexes.
  • Investors are likely to encounter continued momentum from EU countries, as the euro continues to strengthen.
  • Four notable ETF stories in this space include the First Trust Eurozone AlphaDEX ETF (FEUZ), the First Trust Europe AlphaDEX Fund (FEP), the iShares MSCI Eurozone ETF, and the WisdomTree Europe Quality Dividend Growth Fund.

The First Trust Eurozone AlphaDEX ETF (FEUZ)

  • Issuer: First Trust
  • Assets under management: $47.13 million
  • Expense ratio: 0.80%
  • YTD performance: 5.44%

The First Trust Eurozone AlphaDEX ETF is part of First Trust’s AlphaDEX series and focuses on companies in the Eurozone. This Fund invests in top companies in the Eurozone through a tracker fund approach. It seeks to replicate the holdings and return of the NASDAQ AlphaDEX Eurozone Index, which is a rules-based index that screens companies for growth and value factors. The resulting Index constituents are some of the best stocks in the Eurozone, all with significant upside potential.

The First Trust Europe AlphaDEX Fund (FEP)

  • Issuer: First Trust
  • Assets under management: $552.6 million
  • Expense ratio: 0.80%
  • YTD performance: 6.86%

The First Trust Europe AlphaDEX Fund is another fund from First Trust in the AlphaDEX series, using the same AlphaDEX rules-based methodology to rank stocks by growth and value characteristics. It includes a broader universe in the NASDAQ Europe Index, which also encompasses the U.K.

All performance figures listed in this article are as of August 19, 2019, unless otherwise noted.

The iShares MSCI Eurozone ETF (EZU)

  • Issuer: iShares
  • Assets under management: $5.7 billion
  • Expense ratio: 0.47%
  • YTD performance: 8.53%

The iShares MSCI Eurozone ETF tracks the MSCI EMU Index, which includes large- and mid-cap companies in the Eurozone. It is an index fund that offers broad market exposure to Eurozone companies.

The WisdomTree Europe Quality Dividend Growth Fund (EUDG)

  • Issuer: WisdomTree
  • Assets under management: $39.4 million
  • Expense ratio: 0.58%
  • YTD performance: 11.49%

The WisdomTree Europe Quality Dividend Growth Fund was a top-performing fund in 2017, pulling in an astonishing 28% return for that year. The fund is a tracker fund that seeks to replicate the holdings and performance of the WisdomTree Europe Quality Dividend Growth Index.

This index is customized and managed by WisdomTree. It includes European dividend-paying stocks from the WisdomTree International Equity Index. Stocks from the International Equity Index are screened by growth and quality factors. Companies in the Index are fundamentally weighted by annual cash dividend.