Investors Say Europe Is Cooked, But JP Morgan's Euro ETF Is Destroying The S&P and Hot AI Stocks

"JPMorgan BetaBuilders Europe ETF (NYSEARCA:BBEU) provides low-cost exposure to developed European large caps. With a 0.09% expense ratio and $8.4 billion in assets, it tracks hundreds of European stocks weighted by market cap. The fund returned 36.9% year-to-date through late December 2025, more than doubling the S&P 500's 17.8% gain. The return engine is straightforward appreciation of underlying positions. No derivatives, no leverage, no options overlay."

"You own pieces of ASML Holding (NASDAQ:ASML) (3.3% of assets), AstraZeneca (NASDAQ:AZN) (2.2%), Roche Holding (OTCMKTS:RHHBY) (2.2%), HSBC Holdings (NYSE:HSBC) (2.0%), and Nestlé (OTCMKTS:NSRGY) (2.0%). These are global leaders in semiconductors, pharmaceuticals, banking, and consumer staples domiciled in Europe. Defense contractors like Rheinmetall and BAE Systems have benefited from European rearmament. Luxury names like LVMH and Hermès have proven resilient despite economic headwinds. The portfolio also includes SAP (NYSE:SAP), Siemens, and Airbus."

"While NVIDIA (NASDAQ:NVDA) posted strong gains in 2025, BBEU delivered 36.9%, outpacing the S&P 500's 17.8%. Retail sentiment hasn't caught up. In October, BBEU saw $678.7 million in inflows during a single week, a 16.4% surge in outstanding units that signaled institutional conviction even as retail investors stayed away. Currency risk cuts both ways. European investors holding U.S. stocks lost 14% to euro strength in 2025, but American investors in BBEU gained from dollar weakness. When the dollar rallies, those gains reverse."

JPMorgan BetaBuilders Europe ETF (BBEU) offers low-cost exposure to developed European large-cap stocks with a 0.09% expense ratio and about $8.4 billion in assets. The ETF tracks hundreds of market-cap-weighted European names and returned 36.9% year-to-date through late December 2025, outperforming the S&P 500's 17.8%. Holdings include ASML, AstraZeneca, Roche, HSBC, Nestlé, SAP, Siemens, and Airbus, plus defense and luxury companies benefiting from rearmament and resilient consumer demand. Returns stem from straightforward appreciation without derivatives, leverage, or options overlays. Currency movements materially affect returns for cross-border investors and can reverse gains.

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