Vangrd European E.T.F. (VGK)

This gives you access to European stocks. Has about 33% exposure to the UK and the rest pretty evenly divided among the other countries. This is one of your lowest-cost providers. Europe is trading way cheaper than the US at about a 12 multiple versus a 15. Analysts expect European earnings to grow faster than the US at this time. 2.75% dividend yield.

Like the S&P of Europe. Buying it in US dollars right now makes sense.

Likes this for the European exposure, not a euro ETF, of which there are several of. Some of them are only the euro countries, some are the top 50 countries in Europe only and some are specialized in the EU. He prefers it being broader based so he can have the UK included. Good diversity and its cheap.

Market sentiment on EU is that it is starting to come back and prices are depressed relative to the US. The Euro is somewhat expensive so he has a tough time buying here. Wait 3-5 months to get it. If you are rotating to of emerging markets, then he is okay with it.

He has been looking at it for some time. 30% UK and rest less. US$ unhedged. Could also do VEF if you want to include Japan and it is hedged.

This ETF is about a 3^rd UK stocks and the rest is continental Europe. Feels that Europe ultimately goes higher over time. Valuations are less than the US. Trading around 14X in 2013 versus the US at about 15.5X. He sees European companies growing at a faster clip in 2014 over 2013 in the US. Pays a nice dividend.$

The better way to play Europe is VGK-T because the MER is lower than the iShares version. It is probably a better holding but is at a 52 week high and the market is not ripe for a breakout. We are re-testing a high and if we can’t go higher we will correct 5-10% and that is the time to get your money to work in Europe.

This is as good as any for European exposure but will tend to be dominated by financials, big drug companies and some of the big consumer stable companies. Optimism is coming back in Europe that maybe the worst is behind them.