The momentum accrued last year by European equities and the related ETFs is carrying over to 2026, indicating the still young rally could be durable.
Take the case of the WisdomTree European Opportunities Fund (OPPE ), which is higher by more than 6% year-to-date. OPPE came to life last June. At that time, WisdomTree converted an ETF that was born in March 2015 to the European opportunities strategy. That move is paying dividends, because OPPE has outpaced the MSCI Europe Index since its debut.
Advisors and investors looking for unique approaches to resurgent European stocks may find a lot to like with OPPE. For example, the ETF damps currency risk with a dynamic currency hedging methodology. Its perks don’t end there.
“OPPE deliberately allocates two-thirds of the portfolio to companies returning capital through dividends and buybacks, while reserving one-third for forward-looking thematic opportunities tied to geopolitics, technology shifts, and macroeconomic change,” noted WisdomTree’s Christopher Gannatti.
Shareholder Yield Matters
As noted above, OPPE leans into the concept of shareholder yield. That three-pronged approach includes buybacks, dividends and debt reduction. Alone, each of those factors can be beneficial to investors. In unison, the trio signals clear quality. It also suggests that OPPE may merit attention as a long-term core holding for European exposure.
“That mindset is evident in the portfolio’s emphasis on total shareholder yield. Rather than relying solely on price appreciation from Europe’s largest growth franchises, OPPE leans into companies that actively return capital through dividends and buybacks, reflecting management confidence and cash-flow durability,” added Gannatti. “This creates a return profile that is grounded not just in economic growth, but in how that growth is shared with investors.”
As a result of its emphasis on shareholders, OPPE’s sector exposures differ from rival pure beta Europe ETFs. The methodology is rooted in sound reasoning. For example, there are positive reasons that industrial and financial services stocks combine for nearly half of OPPE’s portfolio.
“Banks, industrial firms, and energy companies appear not because they are large, but because they demonstrate tangible capital return and resilience across cycles,” observed Gannatti. “At the same time, exposure to globally competitive companies in areas like automation, infrastructure, and select technology adds a forward-looking dimension that extends beyond traditional income strategies.”
Bottom line: OPPE does things differently than old guard Europe ETFs. The fund’s early results indicate it could be onto something that could reward long-term investors.
This article was prepared as part of WisdomTree’s general paid sponsorship of VettaFi | ETF Trends. This specific content within and any opinions expressed therein belong solely to VettaFi and do not reflect the opinion or analysis of WisdomTree, its employees, or its affiliates. Content published on VettaFi | ETF Trends is provided for educational purposes only and should not be considered investment or tax advice. For investment or tax advice, please consult a financial professional.
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