Vanguard FTSE Europe ETF

VGK

Market cap $28.2B

European equities eked out a modest gain on Thursday, with the pan-European Stoxx 600 reversing early losses to finish 0.12% higher as investors assessed a shifting global economic landscape, incoming corporate news, and rising expectations of US monetary easing. Germany's DAX led the region's major indices, advancing 0.22% to end the day at 23,777.

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.

European Union governments and the European Parliament have reached agreement on harmonising the 27-nation bloc's insolvency laws to make it easier to invest across the EU and create a more liquid EU capital market, the EU Council said in a statement.

The top-performing ETF in the Vanguard stable so far this year is a redemption story. It focuses on a region that has long disappointed investors.

Europe's rally shows no signs of slowing and ETFs like VGK, EZU, BBEU, IEUR and FEZ are tracking the region's surging markets and strong earnings momentum.

U.S. bond markets were shut for Veterans Day. Meanwhile, eurozone government bond yields edged up on growing optimism the U.S. government shutdown is soon ending.

European stocks are expected to maintain their positive momentum as an end to the U.S. government shutdown is in sight.

It's been a good year for international equity ETFs. As a category, broad exposure funds tapping into both developed and emerging market equities have delivered outsized gains relative to U.S. markets this year, as well as much sought portfolio diversification.

"We continue to stay in a good place." ECB governing council member Martin Kocher tells Lizzy Burden there's "no pre-commitment" on any rate path

Global equities strategies are having a moment this year. The SPDR S&P 500 ETF in isolation looks strong, posting an 18.3% year-to-date gain.