Vanguard European ETF (AMEX:VGK)

Extreme pessimism

This ETF has been pummeled by the Eurozone issues. But about 31% of the portfolio in is in the UK, with another 12% in Switzerland. Looks like a chance to get a high-yielding (4+%) basket of mega-cap internationals at a nice risk/reward ratio.

The turmoil in Europe is causing good large caps to be undervalued in 2011. This index includes several global companies based in the UK and Switzerland, outside the Eurozone.

Eurozone is set to drop increased GDP. Germany leads the way. This is a solid short gain.

This ETF is going to $30! I think Greece will get bailed out and this will go to $55. It is going to be at $30 by year end.

Some solid European companies are undervalued right now due to the debt crisis (which should not have a long term impact on solid European companies).

Euro > Dollar in the long term, but not too much

Europe play

Top 600 companies of the EU.
Earnings (mostly) in EUR, might be slower some times than S&P but will be better in the coming 5 years than S&P.

We have this one going down but only for a very short period and based only on stock history charts:

http://www.stocktruth.com/chart.php?symbol=VGK

I purchased this for $59.08/share after commission.

From the Morningstar Analyst Report:

The fund is the best Europe-focused ETF on the market. It is far broader and easier to use than the slew of single-country European funds, which are often dominated by just a few stocks, and as a result, extremely volatile. The fund provides exposure that is both broader and deeper than other pan-European ETFs, such as iShares MSCI EMU Index EZU and iShares S&P Europe 350 Index IEV. This fund boasts the lowest expenses of the lot.

I'm thinking of adding this to my own portfolio. Thanks CAPS for suggesting this!

European ETF is the place to be at this point of time for Growth-At-Reasonable-Price (GARP) investors out there. Excluding Japan from your international developed equity portfolio allocation is a prudent decision considering Japan ETF (EWJ) is still relatively expensive with quite a lackluster growth rate.

play on weakening dollar

I've read some interesting articles about the dollar versus foreign currency. Essentially we get a bonus every time the dollar is devalued, which happens when interest rates are lowered.

I don't understand all the mechanics, but I would imagine that as the $ becomes easier to get, it's value declines. The price of $ is cheaper, so it is less valuable versus foreign currencies.

Foreign stocks then, which retain their value in their own currency, get a boost when traded on the american market because of an increase in value with respect to the dollar.

That's a part of my logic (though it's only a recent addition). The rest is that these economies (europe in particular) are doing better and better financially. Europe is a strong player, to be contended with, and a strong market to invest in.

It reduces some dollar exposure and diversifies out of some big name stocks.

Low cost ETF.

Get a slice of the European Market

European VIPER give you international exposure. Take the dividend while you wait for cap gains.

Foreign markets continue to be strong