Morningstar Rating

ETF Research and Analysis

by Alex Bryan
Suitability
Europe is fraught with risk. Unemployment is close to 11%, fiscal imbalances in Italy and Spain threaten to drag down the rest of the eurozone, and austerity measures could keep demand soft for years. Despite these risks,  Read more 

Bull Case

VGK is the lowest-cost European ETF on the market.
Valuations on European equities are attractive.
European equities can provide diversification benefits for most U.S. investors.  Read more 

Bear Case

It could take years before the structural imbalances underlying the sovereign debt crisis are resolved.
Austerity measures designed to curtail unsustainable deficit spending could keep demand soft for years and undermine a recovery in the near term.
High unemployment and weak consumer demand will likely continue to weigh on the fund's holdings. Read more 

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