Vanguard European ETF (VGK)

TMFPhila (94.24) Submitted: 12/01/06 4:45 PM : Start Price: $65.63 VGK Score: -5.32

According to recent issue of The Economist, "The main reason for the dollar's strength has been the widespread belief that the American economy vastly outperformed the world's other rich-country economies in recent years. But the figures do not support the hype. Sure, America's GDP growth has been faster than Europe's, but that is mostly because its population has grown more quickly too. Dig deeper, and the difference shrinks. Official figures of productivity growth, which should in theory be an important factor driving currency movements, exaggerate America's lead. If the two are measured on a comparable basis, productivity growth over the past decade has been almost the same in the euro area as it has in America. Even more important, the latest figures suggest that, whereas productivity growth is now slowing in America, it is accelerating in the euro zone."

Europe has some great companies trading at good values. This is a low-cost, one stop vehicle for diversifying in the euro zone.

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