CHICAGO, March 3 (Reuters) – While the euro zone presents
the unalluring face of sluggish growth, that doesn’t mean it
should be neglected. There are pockets of promise that are worth
The reason for the negativity stems from concerns over
conflict in Ukraine and reported euro zone growth at 0.3 percent
in the fourth quarter. Although inflation isn’t a problem for
now, almost no analyst is forecasting robust acceleration for
the year in the region, which is expected to expand about 1
percent in 2014.
Beneath this lackluster scenario, though, lie several layers
of companies that are part of Europe’s turnaround story. If you
focus on smaller-cap companies and those paying dividends, the
picture is a mite brighter.
Here are two options you might consider:
The FirstTrust Europe AlphaDEX exchange-traded fund,
invests in an equal-weighted portfolio of European stocks, some
of which aren’t the name-brand companies found in most
The AlphaDEX holdings include roughly 1-percent positions in
companies like Bank of Piraeus S.A., Faurecia S.A.
and Valeo S.A.. Year-to-date, the fund has
gained 7 percent, compared to 1 percent for the MSCI EAFE Index,
a benchmark of international stocks, through Feb. 28.