ALPS O'Shares International Developed Quality Dividend ETF

OEFA

Market cap $38.6M

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.

Soaring oil prices and the military conflict in Iran are among the primary reasons the MSCI EAFE Index is off nearly 6% over the past month. That decline isn't surprising; many of the marquee developed markets comprising that index are energy importers.

Confirming the resurgence of international stocks, the widely followed MSCI EAFE Index trounced the S&P 500 last year, depressing the dividend yield on the foreign equity benchmark in the process. Rest assured equity income investors.

Coming off a year in which the international equity proposition was refreshed as the MSCI EAFE Index handily outperformed the S&P 500, advisors and investors are increasingly inclined to allocate to ex-US markets. That's a sensible approach, as a small number of stocks command massive percentages of widely followed domestic equity gauges.

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.

Investors can be forgiven if they were underallocated to Europe equities entering 2025. After all, stocks across the pond had spent considerable time lagging domestic counterparts.

As concerns related to tariffs weigh heavily on the U.S. market, investors are increasingly eyeing Europe. The ALPS O'Shares Europe Quality Dividend ETF (OEUR) is designed to provide exposure to European companies with good earnings and strong balance sheets that also provide investors with income.

Amid growing investing turmoil, investors may be looking for options that have proven their durability. Foreign equities, specifically, have done well to start the year, while U.S. stocks have tumbled.

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.

Following a multi-year run of lagging U.S. stocks, European stocks are off to impressive starts in 2025. Three of the four largest exchange traded funds in the category are sporting double-digit year-to-date gains and the one that isn't is still up 6.6%, an advantage of 250 basis points over the S&P 500.