eToro: Buy Shares with 0% Commission

Your capital is at risk

10 Popular European ETFs Among UK Investors

Disclaimer Fact Checked

 Alongside the US stock market, European ETFs have been experiencing their longest rally for just under a decade. Namely, the Stoxx 600 European financials ETF secured its seventh consecutive month of gains last month and is currently up by 13.22% in YTD gains.

Key Takeaways on European ETFs

  • According to market analysts and the European Commission the Eurozone economy is forecast to expand by 4.8% this year and 4.5% in 2022. 
  • Many investors are looking to European ETFs to capitalize on the bullish fundamentals
  • ETFs, or exchange-traded funds, allow you to gain exposure to diversified European equities with the highest dividend yields. Many investors also use ETFs to offset market volatility.

List of 10 Popular European ETFs in 2022

The European ETF portfolios focus on the Eurozone’s more developed exchanges such as the UK, Germany, France, Switzerland, and the Netherlands. Here are some European ETFs based on trading volumes.

  1. SPDR Portfolio Europe ETF 
  2. Franklin FTSE Europe ETF 
  3. iShares MSCI Europe Small-Cap ETF 
  4. iShares Core MSCI Europe ETF
  5. Xtrackers MSCI Europe Hedged Equity ETF 
  6. JPMorgan BetaBuilders Europe ETF 
  7. Vanguard FTSE Europe ETF 
  8. Amundi ETF MSCI Europe Banks UCITS ETF 
  9. iShares International Treasury Bond 
  10. iShares Euro Dividend UCITS ETF 

1. SPDR Portfolio Europe ETF (SPEU) 

The SPRD Portfolio Europe ETF tracks the performance of the STOXX Europe Total Market Index. During standard market conditions, this European financials ETF invests around 80% of its total assets in the securities that make up the Europe index. 

Best European ETF - Buy SPEU with eToro

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

As one of the popular European ETFs, it uses a sampling strategy. This means the ETF doesn’t have to buy all the securities represented in the STOXX index. The index is a free-float market cap-weighted index set up to represent a basket of leading EU companies. 

In terms of the fundamentals, the three holdings include Rogers Corp. with 2.08% net assets, Linde Plc with 1.17% net assets, and Unilever PLC with 1.05% net assets. On a one-year basis, the SPRD Portfolio Europe ETF has made returns of 24.86%. It has an expense ratio of 0.09% and has 7.3 million shares outstanding. The current price of the fund is $40.91 representing a daily change of -0.56%. 

Despite the impact of the pandemic on the rest of the world, the SPRD Portfolio Europe ETF (Ticker: SPEU) market price has continued to rise from lows of roughly $30 in Q4 2020 to just under $44 in September 2021. 


2. Franklin FTSE Europe ETF (FLEE)

The Franklin FTSE Europe ETF is designed to offer investment results that closely represent, before fees and expenses, the performance of the FTSE Developed Europe RIC Capped Index. The fund tracks the performance of mid and large-cap stocks from developed European markets.  

Best European ETF - Buy FLEE with 0% commission on eToro

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

When it comes to past performance, the two holdings include Rogers Corp. with 2.38% net assets, and Unilever PLC with 1.20% net assets. On a one-year basis, the Franklin FTSE Europe ETF has made returns of 24.18%. It has an expense ratio of 0.09% and has 6.8 million shares outstanding. The current price of the fund is $28.28 representing a daily change of -0.56%. 

Since November 2020, this European ETF’s market price has risen by 30.4% from $21.68 to the current price of $28.28. 


3. iShares MSCI Europe Small-Cap ETF (IEUS) 

The iShares MSCI Europe Small-Cap ETF seeks to track the performance of the MSCI Europe Small Cap Index consisting of small-cap European equities. The index is a free float-adjusted index that tracks equities across 15 developed EU markets. 

Best European ETF - Buy IEUS

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

In terms of past performance, the holdings include Aercap Holdings N.V. with 0.45% net assets. On a one-year basis the iShares MSCI Europe UCITS ETF has made returns of 28.79%. It has an expense ratio of 0.40% and has 6.6 million shares outstanding. The current price of the fund is $68.09 representing a daily change of -0.84%. 

Since October 28th, 2020 the fund’s market price has increased by 39.5% from $48.82 to $68.09. 


4. iShares Core MSCI Europe ETF (IEUR) 

This exchange-traded fund tracks the investment performance of the MSCI Europe IMI. The index is a free float-adjusted market cap weighted index made up of equities from 15 developed markets in Europe such as the United Kingdom, Austria, Sweden, and Norway. 

Best European ETF - IEUR

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

With regards to past performance, the two holdings include Rogers Corp. with 2.16% net assets, and Unilever PLC with 1.09% net assets. On a one-year basis the IEUR has made returns of 24.05%. It has an expense ratio of 0.09% and has 90.8 million shares outstanding. The current price of the fund is $56.10 representing a daily change of -0.67%. 

Since October 2020 the fund’s market price has jumped by 32.2% from $42.45 to $56.10.


5. Xtrackers MSCI Europe Hedged Equity ETF (DBEU) 

This European ETF tracks the market performance of the MSCI Europe US Dollar Hedged Index. The fund seeks investment results that are generally comparable to the performance of the underlying index, which is designed to track the performance of developed markets in Europe.

Best European ETF - DBEU

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

This European ETF uses a passive investing strategy, while minimising exposure to fluctuations in the value of the US dollar versus the fiat currencies of other major European countries. It will invest at least 80% of its total assets in the underlying index’s securities.

Let’s look at the past performance of this ETF. On a one-year basis the DBEU has made returns of 25.33%. It has an expense ratio of 0.45% and has 17.2 million shares outstanding. The current price of the fund is $34.22 representing a daily change of -0.35%. 

Since October 2020 the ETF’s market price has jumped by 31.9% from $25.95 to $34.22.


6. JPMorgan BetaBuilders Europe ETF (BBEU) 

The JPMorgan BetaBuilders Europe ETF tracks the performance of the Morningstar Developed Europe Target Market Exposure IndexSM. The underlying index is a free float-adjusted index that is made up of stocks from several developed European exchanges. 

Best European ETF - BBEU

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

In terms of past performance, on a one-year basis this European ETF has made returns of 23.56%. It has an expense ratio of 0.09% and has 151.3 million shares outstanding. The current price of the fund is $57.26 representing a daily change of -0.61%.

Since October 2020 this European ETF’s market price has jumped by 32.1% from $43.35 to $57.26.


7. Vanguard FTSE Europe ETF (VGK) 

The Vanguard FTSE tracks the performance of one of the leading benchmark indices that measures the investment return of stocks issued by publicly traded companies listed in major European stock exchanges. The fund uses an indexing investment approach that invests all of its assets in the equities included in the FTSE Developed Europe All Cap Index.

Best European ETF - VGK

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

As for past performance, on a one-year basis this European ETF has made returns of 24.12%. It has an expense ratio of 0.08% and has 311 million shares outstanding. The current price of the fund is $65.71 representing a daily change of -0.59%.

Since October 2020 this European ETF’s market price has jumped by 32.4% from $49.64 to $65.71. For Vanguard ETFs be sure to also read our in-depth guide. 


8. Amundi ETF MSCI Europe Banks UCITS ETF 

If you’re looking for a European banks ETF then the Amundi ETF MSCI Europe Banks UCITS ETF might be one to add to your radar.

Best European ETF - Amundi ETF

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

The investment aims to follow the MSCI Europe Banks index’s price and yield performance before fees and expenditures. The index is a stock market index calculated and issued by MSCI Inc., a global index provider. The stocks that make up the index are issued by European banking corporations.

This ETF allows investors to gain exposure to roughly 50 European bank stocks with a single investment. The largest holdings in the index as of 30/09/21 include HSBC HOLDING PLC GBP with a weighting of 13.47%, and BNP PARIBAS with a 9.01% weighting. 

In terms of the past performance as of October 2021, on a YTD basis the Amundi ETF market price has risen by 38.09%. 


9. iShares International Treasury Bond (IGOV) 

If you’re looking to invest in European bonds ETFs then the iShares International Treasury Bond (IGOV) is one to consider. This fund holds bonds denominated in local fiat currencies. The IGOV ETF tracks the S&P/Citigroup International Treasury Bond Index Ex-US. The ETF’s holdings include European nations such as Sweden, Norway, Spain, Italy, Belgium, France, the UK, and Ireland. 

Best European ETF - IGOV

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

It’s currently trading on the NASDAQ exchange for 50.86 USD, with a 52-week high of $55.97 and a 52-week low of $50.73. On a five-year basis the iShares International Treasury Bond ETF has risen by 4.97%. Since the beginning of the fiscal year, Q1 2021, IGOV has dropped by -8.72%. Some market analysts and ETF traders are looking to invest in this European ETF while the prices are bearish, in anticipation of a potential upswing in the long term. 


10. iShares Euro Dividend UCITS ETF

Are you searching for a European dividend ETF? The fund is designed to track the performance of the EURO STOXX Select Dividend 30 benchmark index made up of 30 stocks with market-leading dividend yields chosen from European countries. 

Best European ETF - IDVY

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.

The iShares Euro Dividend UCITS ETF (IDVY) gives investors exposure to diversified European businesses with the highest dividend yields across the board. By investing in the IDVY you’ll have direct access to 30 publicly-traded companies from the European Union. 

In terms of the European dividend ETF’s performance, on a yearly basis the fund has amassed a total return of 39.26%. The fund also has a total expense ratio of just 0.40%. It is currently trading at 20.52 EUR, which represents a 24-hour change of +0.05%. The MSCI ESG Quality Score as of August 2021 is 7.81. 


Important Features of European ETFs

In concert with the US stock market, European stocks have been experiencing their longest uptrend in the last eight years. In particular, the EURO STOXX 600 equity index secured its seventh consecutive month of gains and is now in sight of reaching an all-time high. 

Major catalysts for this positive run include robust corporate earnings in comparison to 2020’s Covid-induced downturn, resumption of business activities and economies, as well as boosted monetary stimulus into the global economy. 

SXXP index

Publicly-listed constituents of the Stoxx index have reported strong total net incomes for Q2 2021 representing growth of just under 250% from the year-ago quarter, when pandemic lockdowns sent the European economy into its fastest contraction since records began. 

What does the leading data provider FactSet have to say about the STOXX Europe 600 positive earnings? 

According to data provider FactSet, the percentage of European companies beating analysts’ earnings predictions touched a five-year high in the second quarter: 

“With more than 85% of companies in the STOXX Europe 600 having reported second-quarter earnings, earnings growth is through the roof. In March, analysts were projecting EPS growth of a whopping 155%; with earnings season about to wrap up, the reported earnings growth for the quarter is a remarkable 248%.”

What do most market analysts expect will happen? 

Most analysts forecast earnings in the EU region to reach pre-coronavirus levels before the end of the year. Furthermore, with the European Central Bank maintaining its record low interest rates, and continuing to buy 1.85 trillion euros in corporate and government bonds through Q1 2022, many are looking to invest in European ETFs. 

Market analysts expect economy to grow to pre-pandemic levels before end of 2021

The fast rollout of the Covid-19 vaccinations across Europe could also drive further economic growth. Recent data revealed that the European Union has fully vaccinated around 70% of adults. 

The Summer 2021 interim Economic Forecast suggests that the European economy could continue to grow by 4.8% this year and 4.5% in 2022. Additionally, real GDP is expected to reach pre-pandemic levels in the final fiscal quarter of 2021 in both the European Union and the Euro area. 


Brokers that Offer European ETFs

In this section, we’ll cover an ETF broker that offers European ETFs


1. eToro

eToro is now one of the popular global social trading platforms and ETF brokers, with a client base of over 20 million traders. On eToro, you can trade equities, cryptocurrencies, foreign exchange, and commodities, as well as ETFs with 0% commissions. 

Furthermore, each ETF has a $50 minimum investment requirement, which is far less expensive than dealing directly with the fund provider. This enables you to invest in a wide range of ETFs without making a large initial investment. Some traders pick eToro since it offers several passive trading tools that may be used with typical ETF investments. These include CopyTrader and CopyPortfolios. 

Trade the best European ETFs on eToro with 0% Commission

Fees and commissions

eToro facilitates commission-free stock and ETF trading. Users also have access to 17 international stock markets with the click of a button. The minimum deposit is just $50 and you can deposit funds using a wide range of supported payment methods. These include credit/debit cards, e-wallets such as PayPal, Skrill and Neteller, and bank wire transfers. 

Trade the most popular ETFs with eToro

When it comes to non-trading fees these are also very competitive with no deposit fees and account fees to worry about. On the other hand, there is a small $5 withdrawal fee and a $10 inactivity fee after 12 months. 

Is eToro safe?  

eToro is regulated by several financial authorities including the UK’s FCA, CySEC, and ASIC. The majority of clients’ funds are held in segregated bank accounts. Moreover, UK traders can expect to be compensated up to £85,000 covered by the Financial Services Compensation Scheme (FSCS). 

eToro Fees:

Account Fee None
Deposit Fee None
Cost to Invest in ETFs 0% Commission
Pricing Structure 0% Commissions, low spreads

Sponsored ad. 68% of retail investor accounts lose money when trading CFDs with this provider.


Conclusion

Investors and traders are looking at European ETFs to ride out the bullish post-pandemic fundamentals. We have picked ten popular European ETFs that have reported gains and positive returns in YTD earnings. 

Frequently Asked Questions on European ETFs

What is a European ETF?

How do I buy European ETFs?

Dassos Troullides author check sign Pro Investor

Dassos Troullides is one of the editors for BuyShares.co.uk who specializes in CFD, stock, forex, and crypto trading. He uses his experience and time spent in the forex industry to simplify complex financial topics for easy, informative reading.

RECOMMENDED BROKER

Join eToro for 100% stocks, 0% commission

  • 0% Commission and No Stamp Duty
  • Regulated by US, UK & International Stocks
  • Copy Successful Traders
Visit Etoro
Your capital is at risk.