This ETF tracks the MSCI EMU Index and holds large- and mid-cap stocks from the developed eurozone countries that use the euro, weighted by market capitalization. It spreads investments broadly across listed companies in the eurozone's core economies, centered on Germany and France.

It suits long-term investors who want to diversify a U.S.-heavy portfolio into Europe's core economies.

The ETF is passively managed (index-tracking) by iShares.

The ETF holds large- and mid-cap stocks from developed eurozone countries, where the euro is the official currency, in line with their weights in the MSCI EMU Index, so it follows the performance of Europe's core economies. Financials, industrials and consumer staples carry relatively large weights, and rebalancing reflects index changes on a quarterly basis.

• Concentrated exposure to the single-currency eurozone
• Broad diversification across European large- and mid-cap stocks

Assets under management (AUM) stand at $9.4B, and the total expense ratio is an annual 0.50%.

Compared with broad U.S. core ETFs, it diversifies regional and currency exposure, and its focus on the single-currency eurozone is a defining feature.

The ETF moves with the eurozone stock market as a whole, and short-term fluctuations tend to follow the European economy, European Central Bank monetary policy and the euro-dollar exchange rate. It can show a somewhat different cycle from the U.S. market.

Fund flows are driven by demand for regional diversification away from U.S.-concentrated portfolios, and interest tends to rise relatively when the dollar weakens or expectations of a European economic recovery come into focus.

Its strength is one-step diversification across the eurozone's core economies, while currency exposure and regional concentration are its drawbacks.

Among the comparison candidates in the same international equity category shown in the table, VPL and IPAC are ETFs with exposure to developed Asia-Pacific markets, ILF focuses on Latin America, and AIA focuses on large-cap Asian stocks. As direct substitutes for European exposure, you can also consider HEZU, which applies a currency hedge, VGK, which widens exposure beyond the eurozone to all of Europe, and EFA, which broadly tracks developed markets as a whole.

Here are the points to review before investing in EZU. It is a core holding that diversifies into the eurozone's core economies, but it is wise to check currency exposure for investors who hold won, eurozone regional concentration and the fee burden before buying.

The eurozone economy, European Central Bank policy and exchange rate movements are the main drivers of short-term volatility. Because the structure is concentrated in a single region, short-term losses can grow during a European economic slowdown.

It is a core holding suited to long-term investors who want to diversify beyond the U.S. into Europe's core economies. To reduce currency swings, you can consider a currency-hedged version, and to widen exposure to all of Europe, you can consider VGK as well.