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Euro may be rising this year, causing many to fear a crash in European companies’ equities, especially those that are export oriented. After all, CurrencyShares Euro ETF (FXE - Free Report) is up 14.5% so far this year (as of Sep 12, 2017).

But this should not retard the European stock rally. Euro’s stupendous rally is mainly driven by the economic resurgence in the Eurozone. The ECB upped its economic growth forecast from 1.9% to 2.2%. In fact, the Eurozone is on its way to record the “fastest growth” since 2007.

Against this backdrop, we highlight a few European ETFs that offer solid potential.

Sweden – iShares MSCI Sweden Capped ETF (EWD - Free Report)

The Swedish economy is on a strong uptrend, having advanced 1.3% sequentially in the second quarter of 2017, trumping market expectations of 1% and following an upwardly revised 0.6% growth in the previous period.

This was the strongest clip of expansion since the last quarter of 2015, helped by net exports and government spending. Sweden's central bank is not likely to consider a rate hike until the middle of 2018 and wants to keep it at -0.5% now, which in turn should boost growth.

Denmark – iShares MSCI Denmark Capped ETF (EDEN - Free Report)

The Danish economy rose 0.6% sequentially in the second quarter, higher than an earlier estimate of 0.5% and the same as in the previous period. As per the internal affairs ministry, the economy is likely to close out 2017 with the best growth rate in 10 years. “Over the last three years, GDP has risen by 1.7 percent per year,” the ministry added.

The export growth remained strong in countries like Germany, Sweden and China. The country which has the highest tax to GDP ratio of any developed nation, also considers cutting taxes on cars and pensions. This should benefit the country’s growth further.

Austria – iShares MSCI Austria Capped (EWO - Free Report)

Austria's economy advanced 2.2% sequentially in the second quarter of 2017, below an upwardly revised 2.5% growth in the second quarter. The country’s manufacturing activity grew at the fastest clip in six-and-a-half years in August, driven by higher production, new export orders and employment. The economy grew 0.8% sequentially in the second quarter, marking the highest growth rate since the first quarter of 2011. This makes it important to bet on this Austria ETF.

Germany – iShares MSCI Germany ETF (EWG)

Economic growth is gaining momentum in countries including Germany and France, as per OECD. The OECD outlook for Germany rose to 100.9 from 100.3. Solid household and state spending made Germany Eurozone’s growth engine.

In the second quarter of 2017, GDP rose 2.10% year over year, higher than 2% growth reported in the previous period and in line with the preliminary estimate. Sequentially, the economy grew 0.6%, marking the 12th quarter of expansion in a row (see all European Equity ETFs here).

France – iShares MSCI France ETF (EWQ - Free Report)

The French economy expanded 0.5% sequentially in the three months ended June 2017, in line with the preliminary estimate and the previous two periods. This marked four quarters of expansion in a row, mainly supported by household consumption, government spending and exports. Year over year, the economy grew 1.7%, representing the strongest clip of expansion since the third quarter of 2011. Macron’s proposed pro-growth reforms, if implemented, are likely to take the French economy a notch higher (read: How will Macron's Labor Reforms Impact ETFs).

The Netherlands – iShares MSCI Netherlands Investable ETF (EWN - Free Report)

The Dutch economy jumped 3.3% year over year in the second quarter of 2017, beating 3.2% growth recorded in the previous period and forecasts of 2.3%. This marks the highest expansion since the last quarter of 2007. On a sequential basis, the economy grew 1.5%, breezing past market expectations of 0.6%.

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