Europe's Blue Chips Make a Comeback with IEU ETF Leading the Charge

The IEU ETF has seen renewed interest from investors seeking diversification and value. After years of US technology dominating global returns, European equities have drawn attention due to their lower valuations and different sector mix.

IEU tracks the S&P Europe 350 Index, providing broad exposure to around 380 large European companies across developed markets such as the UK, France, Germany, and Switzerland. The fund is currency-unhedged, meaning its returns for Australian investors are affected by movements in the AUD against European currencies.

The sector mix of IEU differs significantly from the US market, with larger weightings to financials (25%), industrials (19%), and healthcare (13%). This means its returns are driven by Europe's major banks, pharmaceutical and healthcare companies, industrial firms, and consumer-goods makers.