iShares MSCI EMU Index (ETF) (AMEX:EZU)

It’s been hard to go mistaken investing abroad, as mutual and exchange-traded funds that hold foreign stocks, have time and again outperformed their domestic counterparts. For 2007 also, the scenario looks positive, but given the vagueness about U.S. interest rates, it will be wiser for a prudent investor, to move some funds out of US and volatile emerging markets into Europe, which envisages an improved operating environment.

Endorsing the same, iShares MSCI EMU Index (EZU) lays out a perfect platform for the investors. EZU is a passive fund that simply attempts to match the performance of the MSCI EMU Index and is designed to track the stocks in member nations of the European Monetary Union. It includes companies based in Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Portugal, and Spain, but excludes the United Kingdom, Switzerland, and others. With a heavy exposure in banks, utilities and telecom sector, the funds seems to be a good investment proposition, as is well diversified geographically as well as industry-wise.

Lately, Europe's economic growth has surpassed expectations with GDP growth in the euro area and the EU accelerated to an annualized rate of 3