EUFN - Desynchronization Gives EUFN An Opening
2024-06-30 01:02:56 ET
Summary
- The iShares MSCI Europe Financials ETF is a sector focused international ETF, focusing on European financials.
- EUFN has performed strongly over the past three years, outperforming both the broader European market and a comparable US financials ETF, despite facing sector-specific challenges.
- The recent ECB rate cut and potential rate cuts by the Bank of England present uncertainties. However, the fund has compelling fundamentals. It is currently rated as a hold.
Maybe it's the upcoming Olympics, or because it's summertime, or because of the recent ECB movements, but I've been thinking a lot about Europe recently. We are in a rare period of "desynchronization" where the Fed has directionally diverged from the ECB in terms of interest rates. Although, both central banks on either side of the Atlantic have been vague about their near-term plans. It is unclear as to when the US will lower rates, and the ECB is being tight-lipped as to whether or not they continue on the path of rate reductions. Given the circumstances, I thought it would be a good time to take a look at the iShares MSCI Europe Financials ETF ( EUFN )....
Desynchronization Gives EUFN An Opening