O’Shares Europe Quality Dividend ETF [OEUR] Stock Forecast

Europe investing has outperformed the United States in the initial phase of 2023. Cheaper valuation, upbeat corporate earnings, a more resilient economy and still-lower interest rates in Europe than United States have led to the rally.

Fund managers are finding opportunities in European stocks, particularly after sloughing off the effects of the Credit Suisse bank rescue. In times of persistent inflation, European equities can also provide a source of alternative income via dividends.

Dividends were hot to end last year and enter into 2023. While the year did start with a notable mini-rally, current income is still worth adding to a portfolio to mitigate volatility.

The Europe ETF hit a 52-week high. Can it soar higher?

Bull vs. Bear is a weekly feature where the VettaFi writers' room takes opposite sides for a debate on controversial stocks, strategies, or market ideas — with plenty of discussion of ETF ideas to play either angle. For this edition of Bull vs.

Even as global stocks slouched on Thursday, European equities are still outperforming U.S. stocks year-to-date. European stocks closed slightly lower on Thursday on investor concerns regarding higher for longer interest rates.

We think improving euro area activity signals more rate hikes to come. We like short-term government bonds, high-quality credit and selected equity sectors.

Lower energy prices have boosted both business and consumer confidence. However, the better growth outlook will slow the decline in core inflation, pushing the ECB to act more forcefully.

Investors are placing bets on more aggressive rate hikes by the European Central Bank (ECB). For fixed income investors looking to counter rising rates, consider a dividend exchange-traded fund (ETF) option like the ALPS O'Shares Europe Quality Dividend ETF (OEUR).

Amid an improving macroeconomic outlook, European equities are performing admirably this year. In some cases, the related exchange traded funds are outpacing U.S. benchmarks.