Switch­ing at­ten­tion to Europe

Finweek English Edition - - INVESTMENT - SIMON BROWN *The writer owns shares in DBXUS.

WE HAVE PRE­VI­OUSLY punted the DB US ex­change-traded fund (DBXUS*) as a pick, it has done well and we con­tinue to hold it.

How­ever, our at­ten­tion has turned to the EU and sure, the mar­kets have done well, in many cases bet­ter than the US mar­kets, as they move off a much lower base. But what we are see­ing is a def­i­nite re­cov­ery in Europe, al­beit a slow re­cov­ery, and the re-elec­tion of An­gela Merkel tells us that the union will con­tinue along the same pol­icy path. That is the pol­icy path that has served it well thus far and which will con­tinue to pull Europe out of its trou­bles.

This ETF is euro-based and of­fers a cur­rency hedge; it also tracks the EURO STOXX 50 In­dex, which in­cludes the top 50 eu­ro­zone blue-chip stocks, so one is not tied to any one coun­try but rather the re­gion as a whole. Al­though Ger­man and French com­pa­nies make up some 68% of the fund, these are global op­er­a­tions.

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