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Europe Financials ETF (EUFN) Hits New 52-Week High

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For investors seeking momentum, iShares MSCI Europe Financials ETF (EUFN - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 41.6% from its 52-week low price of $21.04/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

EUFN in Focus

The underlying MSCI Europe Financials Index is a free float-adjusted market capitalization weighted index designed to measure the combined equity market performance of the financials sector of developed market countries in Europe. The product charges 48 bps in annual fees (See: All Financial ETFs here).

Why the Move?

European market equities have been in a great shape lately. European banks’ net interest income remained strong in Q4 2024, while revenue growth outpaced cost growth, per EY. The European banking results indicate that banks’ leaders are cautiously optimistic about the sector’s outlook for 2025, as per the above-mentioned article.

Recent rate cuts resulted in robust mortgage growth, which is expected to continue throughout 2025. Investment banking revenues at European banks reached their highest levels since 2009.

More Gains Ahead?

Currently, EUFN has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 37.45 (as per Barchart.com), which gives cues of a further rally.


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