WisdomTree European Opportunities Fund

OPPE

Market cap $181M

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.

WisdomTree European Opportunities Fund ETF (OPPE) offers exposure to European value stocks and companies benefiting from geopolitical and macro trends. OPPE is overweight large-cap industrials, features attractive valuation metrics, and has outperformed peers like IEUR and VEA over the past five years. The ETF maintains a dynamic currency hedging approach, making it suitable for both strong and weak dollar environments.

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.

Following a rough start to 2025, the S&P 500 has posted a YTD gain of about 9.4%. It's still being trounced by an array of European equity ETFs.

By Christopher Gannatti, CFA and Samuel Rines Key Takeaways In 2025, U.S. investors are increasingly shifting toward European equities as sectoral parallels, especially in defense, industrial automation and banking, offer similar exposures at significantly lower valuations and with higher dividend yields.

European equities and related ETFs are among the leading Q1 trades, powered significantly by large-caps. That's the result of investors embracing European industrials amid expectations countries there will largely boost defense spending.

The WisdomTree Europe Hedged SmallCap Equity Fund receives a Hold rating when compared to other Europe-only hedged ETFs and a Sell when compared to US small-cap ETFs. EUSC tracks the WisdomTree Europe Hedged SmallCap Equity Index, aiming to neutralize Euro/USD fluctuations, with a focus on small-cap, dividend-paying European stocks. Despite its hedging benefits, EUSC's $59m AUM is barely viable, and its 58bps fee aligns with other WisdomTree hedged ETFs.

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.

With the U.S. election result and the German government's collapse, the lagging European economy is at a crossroads.