Four Ways to Invest in Europe
Broad Europe
The entire European market in one ETF. UK, Germany, France, Switzerland, Nordics — 1,000+ companies across all sectors and currencies.
VGK, IEUR
Eurozone Focus
Only countries using the euro. Pure EUR exposure without GBP or CHF. Concentrated on France and Germany, Europe's two largest economies.
EZU, FEZ
Single Country
Concentrated bets on individual economies. Germany for industrial exports, UK for post-Brexit value and high dividends.
EWG, EWU
Tactical
Specialized plays: currency-hedged Europe (removes EUR/USD risk) or a sector bet on European financials trading at deep discounts.
HEDJ, EUFN
Broad Europe
The entire European market. Maximum diversification, minimum cost.
Eurozone Focus
Pure euro-denominated exposure. France, Germany, Netherlands, Spain, Italy.
Single Country Bets
Concentrated exposure to Europe's two largest economies.
Tactical Plays
Currency hedging and sector bets for investors with a specific thesis.
Three-currency diversification for LATAM investors
Buying European ETFs creates a three-currency portfolio: your local currency (MXN/BRL) + USD + EUR. This is genuine diversification. If the USD weakens after years of strength, EUR-denominated assets benefit. If you DON'T want EUR exposure, HEDJ removes it through currency hedging.
How Have They Performed?
Broad Europe, eurozone-only, currency-hedged, and single-country — compared.
VGK
VGK
Vanguard FTSE Europe ETF
Vanguard FTSE Europe ETF
VGK
$87.06+0.35%
TER: 0.06%
EZU
EZU
iShares MSCI Eurozone ETF
iShares MSCI Eurozone ETF
EZU
$66.60+0.37%
TER: 0.50%
FEZ
FEZ
State Street SPDR EURO STOXX 50 ETF
State Street SPDR EURO STOXX 50 ETF
FEZ
$65.94+0.26%
TER: 0.29%
HED
HEDJ
WisdomTree Europe Hedged Equity Fund
WisdomTree Europe Hedged Equity Fund
HEDJ
$55.00+0.55%
TER: 0.58%
EWG
EWG
iShares MSCI Germany ETF
iShares MSCI Germany ETF
EWG
$41.60-0.05%
TER: 0.49%
Where to Buy European ETFs
Regulated platforms available in your country. Data from our broker comparison.
GBM
4.5
Platform of the Grupo Bursátil Mexicano that facilitates investing from Mexico in stocks, funds, and ETFs through a digital, educational, and intuitive interface. Design your portfolio and grow your wealth step by step.
Fintual
4.3
Latin American fintech that democratizes investing through mutual funds, stocks, and ETFs. Start investing with no commissions and from USD 1.
Folionet
4.3
Established in Miami for the Latin American audience, Folionet provides you access to your own investment account in the U.S., wherever you are. Choose between a personal account or one with advisory services and start enhancing your capital in international markets.
Hapi
4.2
A platform originating from Peru, Hapi democratizes access to the U.S. Stock Market from Latin America, allowing you to invest in over 12,000 stocks, ETFs, and cryptocurrencies starting from just US$5. Begin building your portfolio today.
Should You Add European ETFs to Your Portfolio?
Potential benefits
- European stocks trade at a significant P/E discount to US stocks. Lower starting valuations have historically predicted better forward returns.
- Three-currency diversification: MXN/BRL + USD + EUR. Reduces dependence on any single currency.
- Higher dividend yields than US — European markets average 3-4% vs US 1.5-2%.
- World-class companies in luxury (LVMH), industrials (Siemens, Airbus), healthcare (Novartis), and energy (Shell).
- Market leadership rotates. The US dominated 2010-2024, but Europe dominated 2000-2009.
Risks to understand
- Slower growth than US tech stocks. Europe has no NVIDIA, no Meta, no Amazon.
- EUR/USD currency risk can hurt returns even when European stocks rise. Consider HEDJ if this concerns you.
- Political fragmentation — EU policy disagreements can impact markets.
- Two currency conversion steps for LATAM investors (MXN/BRL → USD → EUR) add complexity.
- European banks and energy companies dominate indices — less tech, more cyclical.
How We Selected These ETFs
European-domiciled holdings
Every ETF holds primarily European stocks. We excluded global ETFs that happen to include some European companies.
Four strategies represented
Broad diversification, eurozone focus, single-country bets, and tactical plays (hedging, sector) — each with a distinct risk/reward profile.
Established and liquid
All ETFs have over $1B in assets and sufficient daily volume for LATAM investors to enter and exit without excessive spreads.
Low cost
Expense ratios under 0.60%. Most are under 0.15% — European market access shouldn't cost much.
Mix of broad and focused
From 1,300-stock broad market ETFs to 50-stock blue chip concentrations. Choose your conviction level.
Frequently Asked Questions
Market leadership rotates in long cycles. The US dominated 2010-2024, but European and emerging markets dominated 2000-2009. European stocks currently trade at a significant P/E discount to US stocks. Lower starting valuations have historically predicted better forward returns. Diversification means owning both, not trying to time which market leads next.
When you buy a European ETF in USD, you're exposed to EUR/USD exchange rate movements. If the euro weakens against the dollar, your returns suffer even if European stocks go up. HEDJ eliminates this risk through currency hedging, but at a higher expense ratio (0.58%). If you WANT EUR diversification as a LATAM investor, don't hedge. If you only want stock exposure, consider HEDJ.
Eurozone ETFs (EZU, FEZ) hold stocks only from countries using the euro: Germany, France, Netherlands, Spain, Italy, etc. Broader Europe ETFs (VGK, IEUR) also include the UK (GBP), Switzerland (CHF), Sweden (SEK), Norway (NOK). The distinction matters for currency exposure and geographic coverage.
Yes. European dividend yields average 3-4%, compared to 1.5-2% for the US market. UK stocks are particularly high-yielding. However, for LATAM investors, remember that US dividend withholding tax still applies (10% Mexico, 30% Brazil) since these ETFs are US-listed.
In Mexico, VGK, EZU, and FEZ are likely on the SIC through GBM and Bursanet — verify availability for country-specific ETFs. In Brazil, there are no BDR equivalents on B3, so you need an international broker like Interactive Brokers or Avenue. Check if EURP11 on B3 is a local alternative.
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