The Euro Free Europe ETFdb Portfolio is now available to ETFdb Pro members, offering an option for those who wish to construct a portfolio that offers well-rounded exposure to European markets, while at the same time avoiding any euro-denominated assets. This portfolio may appeal to investors who are bullish on the economic recovery overseas and wish to maintain tangential exposure to this region. The distinguishing feature is that it avoids direct exposure to the euro itself, given the headwinds faced by several debt-stricken Euro zone member nations.
The Euro Free Europe ETFdb Portfolio is constructed with several key principles in mind. First and foremost, this portfolio does not hold any euro-denominated assets or provide exposure to countries which use the euro. This investment approach may appeal to investors who are worried over the financial health of the Euro zone given the concerning debt burdens of member nations like Greece, Portugal, Ireland, Spain, and Italy. Debt-drama in the region has been fueling volatility in the currency markets as investors have become worried about the structural weakness that the currency may face [see Eric Dutram Discusses ETFs And The European Debt Crisis On BNN]. Another key principle which guides this portfolio’s investment strategy is establishing well-rounded, tangential exposure to European equity markets. The equity component is built out with several European country ETFs, all of which maintain their independence from the euro [see ETF Insider: Euro Zone Euphoria Here To Stay?]. Investors who are bullish on the economic recovery overseas, but worried of the euro’s outlook, may be able to take advantage of this portfolio’s investment strategy.
The Euro Free Europe ETFdb Portfolio offers well diversified exposure across both developed and emerging European countries, all of which are not directly tied to the euro. This portfolio maintains a very heavy-tilt towards equities and is likely far too risky for retired investors or those who are in pursuit of a low-risk strategy. Instead, this portfolio is intended for investors who wish to position themselves in anticipation of a recovery across European markets. Another distinguishing feature of this portfolio is that it lacks traditional bond market exposure; instead it includes a currency ETF that coincides well with this portfolio’s theme while also offering the potential to profit from declines in the euro.
The complete Euro Free Europe ETFdb Portfolio is available to ETFdb Pro members or with a free 7-day trial to ETFdb Pro. Also check out our new Jim Rogers Wannabe ETFdb Portfolio, as well as our Simple (But Effective) Safe Haven ETFdb Portfolio.
Also included with the ETFdb Pro subscription are more than 25 all-ETF model portfolios, including both retirement-focused and more tactical themed strategies. [To see all that is included, a free sample of the Emerging & Frontier Markets ETFdb Portfolio is available to all ETFdb readers]