Investment thesis
In spite of the tremendous underperformance of European indexes versus the S&P 500 over the last ten years, there are now good reasons to consider exposure to the Stoxx Europe 600 over the flagship American index.
In fact, the pan-Europe index is more defensive and less concentrated than the S&P 500, which is relying heavily on a few stocks for growth.
Moreover, with the Federal Reserve pumping trillions of dollars into the economy and the US federal debt reaching record highs, an investment in Europe could provide diversification against a drop in the