iShares MSCI Europe Financials ETF

EUFN

Market cap $4.27B

iShares MSCI Europe Financials ETF remains a "Buy," but with a less compelling bull case than earlier in the year. EUFN's valuation is less attractive, and seasonal trends suggest sideways price action in the coming months. Technical indicators show short-term weakness, though the long-term trend remains bullish, with support around $32.50.

Launched on January 20, 2010, the iShares MSCI Europe Financials ETF (EUFN) is a passively managed exchange traded fund designed to provide a broad exposure to the Financials - Broad segment of the equity market.

The iShares MSCI Europe Financials ETF (EUFN) was launched on January 20, 2010, and is a passively managed exchange traded fund designed to offer broad exposure to the Financials - Broad segment of the equity market.

EUFN exposes investors to European financial sector equities but carries a relatively high expense ratio of 0.48%. Despite positive analyst ratings, I recommend avoiding EUFN due to four key concerns. The ETF has historically underperformed relative to other investment options.

European banks have delivered strong returns since 2018, outperforming US peers and benefiting from improved balance sheets and higher interest rates. Despite high past returns and growing optimism, caution is warranted due to the sector's cyclical nature and slowing eurozone growth projections. Valuations remain attractive, with many banks trading below book value and offering appealing dividend and shareholder yields, especially in France and Spain.

If you're interested in broad exposure to the Financials - Broad segment of the equity market, look no further than the iShares MSCI Europe Financials ETF (EUFN), a passively managed exchange traded fund launched on 01/20/2010.

I rate iShares MSCI Europe Financials ETF a Buy, as recent performance and favorable equity factors suggest a good entry point compared to other European and U.S. financial ETFs. EUFN offers a 4% yield, solid dividend growth, and broad exposure to European financials, but comes with higher volatility and currency risk. WisdomTree Europe Hedged Equity Fund ETF provides currency-hedged, diversified European exposure, outperforming over the last decade, but EUFN has led in recent years except for short-term periods.

EUFN is tracking for its best year on record. With a low P/E and incredible momentum, the fundamentals and technicals align well. I call out key price levels to monitor as we approach the second half of 2025.

On this week's episode of ETF Prime, host Nate Geraci and Roxanna Islam, head of sector & industry research at VettaFi, break down the year's top-performing ETFs, highlighting many International ETFs. Later, Alexandra Levis, founder & CEO of Arro Financial Communications, details marketing approaches for ETF issuers.

Investors typically diversify global portfolios with broad international ETFs. But recent market volatility has caused investors to look more closely at various international opportunities.