BLDRS has one broad European ETF that does a good job of capturing big
Europe with a higher yield than SPY, writes Roger Nusbaum. That fund is NASDAQ BLDRS Europe
100 ADR Index Fund (ticker: ADRU).

I have written a lot about foreign investing and more specifically lower beta, higher yielding foreign stocks. Europe in general, is higher yielding but not always less volatile.

The Yahoo finance page says ADRU yields 0.98%. This is incorrect. According to Schwab, over the last twelve months ADRU has paid $1.54 in dividends and $0.07 in capital gains. The $1.54 works out to a yield of 2.2%. You can click here for a list of the holdings in ADRU.

Another proxy is the iShares Europe 350 (ticker: IEV) which only yields 1.79% but has had better price appreciation.

The other ETF that I am aware that capture big Europe is the streetTRAKS Euro Stoxx 50 (ticker: FEZ) which yields 2.2%.

The knock on Europe is that it is growing slower than the US and unemployment has been much higher than in the US. Both true but not new. At times Europe offers a low correlation to US markets, but not so much lately. I have written many times about potential demand for Euros, at the expense of dollars, could help move European stock markets higher. The other things is I'm not advocating you put half your money here either. But some exposure probably makes sense.

I do not own any of the three personally or for clients nor am I likely to buy them because I use individual stocks to capture Europe. The volume in all three, especially ADRU is extremely low, so limit orders would a smarter way to trade these.

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