Goldman Sachs ActiveBeta Europe Equity ETF

GSEU

Market cap $118M

As Europe confronts a new energy crisis, we explore key measures to strengthen energy security beyond simply lowering energy bills, and the potential implications for business leaders. Europe now relies on a wider range of suppliers, but paradoxically, the new geopolitical situation still leaves Europe vulnerable.

AI-related equity jitters are unlikely to be resolved overnight and eurozone government bonds could actually come out as a winner. Relative to euro rates, US equity volatility is reaching highs similar to previous crisis periods. A global rebalancing of portfolios could see significant demand for euro rates, mitigating the upward rate pressure.

Europe's macro outlook is shifting. After years of fiscal restraint and fragmented policy, the region is entering a new chapter - one centered on pro-growth fiscal policy, energy security, and capital-market reform.

It's been a strong year for non-U.S. equities, with Europe equities being one notably strong area for performance. A Europe equities ETF could provide a potentially more reliable and focused alternative to a broader international equities ETF.

For investors looking for income through a multi-asset class approach, it might seem sensible to max out the dividend yield within the equity allocation. Yield-focused equity strategies may introduce regional and sector concentrations that can influence returns. Given the relatively attractive yields available in other asset classes, we think it makes more sense to design 'core-like' equity exposure within multi-asset income solutions.

French bond yields have risen significantly against German bunds and are likely to stay elevated or potentially move higher. The European Central Bank still appears to be a reliable backstop against excessive bond turmoil.

U.S. ETFs have been beaten down massively this year while Europe ETFs have been hovering around a one-year high.

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

Plans to increase defense and infrastructure spending offer compelling economic benefits for Germany's lagging manufacturing sector. The US seems to be dramatically reducing spending through its Department of Government Efficiency (DOGE) effort.

Absolute Return Partners is a London-based investment advisory business. Founded by Niels Jensen in 2002, it focuses on providing bespoke alternative investment solutions to institutional investors.