ETF News

Earlier this year, the immediate post-liberation-day performance of non-U.S. equities was notable, as many investors shifted to European and international equity solutions for safety, driving a clear rise in performance for these asset classes. While U.S. equity performance has regained leadership, European equities remain compelling. This article highlights some top-performing European equity ETFs and their value propositions.

Broad Market Exposure

For Canadian investors seeking broad market exposure to European equities, both the Vanguard FTSE Developed Europe All Cap Index ETF (Ticker: VE) and the Invesco S&P Europe 350 Equal Weight Index ETF (Tickers: EQE/EQE.F) offer this.

VE tracks the FTSE Developed Europe All Cap Index and invests in large-, mid-, and small-cap stocks of companies based in developed European markets, according to their designated market capitalizations. Conversely, EQE invests in securities of European companies to replicate the S&P Europe 350 Equal Weight Index, which has the same constituents as the capitalization-weighted S&P Europe 350; however, each company in the index is allocated a fixed weight of approximately 0.286% at each quarterly rebalancing of the index. 

Since liberation day, the performance of VE and EQE has been 12.94% and 13.91%, as of November 2nd, 2025.

Dividend Focused

For Canadian investors seeking exposure to European firms that are consistent dividend payers and have grown their dividends over time, RBC Quant European Dividend Leaders ETF (Tickers: RPD/RPDH/RPD.U) provides exposure to high-quality European firms that possess these attributes. The fund's managers use a quantitative multi-factor approach to assess a company's financial strength, aiming to create a diversified portfolio that provides regular income from dividends and has the potential for long-term capital growth.

Since liberation day, the performance return of RPD has been 16.59%, as of November 2nd, 2025.

Thematic Focus

For Canadian investors who may be interested in Europe’s banking sector, the Evolve European Banks Enhanced Yield ETF (Ticker: EBNK/EBNK.B/EBNK.U) invests in equity securities of the largest European banks on an equally weighted basis, with the added value of a covered call strategy applied to up to 33% of the portfolio. The fund will track the performance of the Solactive European Bank Top 20 Equal Weight Index Canadian Dollar Hedged.

Since liberation day, the performance return of EBNK.B has been 23.44%, as of November 2nd, 2025.

European equities offer investors seeking to diversify beyond North American stocks the opportunity to invest in companies with unique value propositions that serve global markets. For Canadian investors interested in gaining exposure to European firms, there are several options and investment strategies for them to consider integrating into their portfolio.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.