European equity ETFs potentially offer long-term value for investors who can look beyond the immediate crisis currently afflicting the continent. “European equities are unloved and out of favour. But in this lies an opportunity”, says JP Morgan. “European companies are positioned to benefit from global growth, with an increasing exposure to emerging markets, so any evidence of a pickup in economic activity will be positive for earnings. At the same time, valuations are cheap, providing a potentially attractive entry point for long-term investors.”

Southeast Asia is a rising star of the global market, led by its five fastest-growing countries: Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, according to a report by PwC. “Economic, political, and market factors, combined with a landscape more focused now than ever on attracting capital and development, have converged to create a mature environment ripe with opportunity”, the report says. We profile over a dozen ETFs offering exposure to the region.

With PEs below their long-term average, small-cap valuations are currently attractive on both an absolute and relative basis, according to analysis by Threadneedle Investments. Moreover, small-caps have delivered superior risk-adjusted returns over many periods. Investors can access this opportunity via small-cap ETFs such as the iShares S&P SmallCap 600 ETF, the STOXX Europe Small 200 Source ETF and the SPDR MSCI Emerging Markets Small Cap ETF.

After the crises of the past, the economies of many African countries are clearly heading for growth. Political and economic stability has increased and the region is set for economic growth of 5.4% in 2012, according to a new study by Commerzbank. Many countries will enjoy even higher growth. Investors can access this potential via a number of low-cost ETFs, including the DB X-tracker MSCI EFM Africa Top 50 Index ETF (XMAF) and the Van Eck Market Vectors Africa Index ETF (AFK).

Japan’s exports jumped 10% in May, according to data from Japan’s Ministry of finance. Imports also increased during the month in a sign that domestic demand may also be picking up. Overall, the data eases concerns about the impact of a global slowdown on the Japanese economy, raising interest in Japanese equity ETFs. Katsuaki Ogata, a CIO at Alliance Bernstein, believes that, at today’s valuations, Japanese equities offer an “exceptional investment opportunity” and that the Japanese market is “available at historically attractive prices”.

Fidelity has announced that its FundsNetwork funds platform will be adding an initial range of 50 physically-backed ETFs as of 18 June. The move is reflective of growing interest in ETFs and the upcoming introduction of the Retail Distribution Review (RDR). The initial line-up of 50 ETFs has been selected from the ranges of four leading ETF providers, namely iShares, Credit Suisse, HSBC and ETF Securities, and provides exposure to a broad range of global markets and asset classes.

The need for action prompted by climate change and the crises surrounding energy supply security will likely trigger changes in virtually every area of the economy. A new study from Allianz Global Investors argues that this could lead to a new phase of growth. The world economy, they say, may be at the beginning of a new long-term cycle of prosperity, or sixth Kondratieff cycle, characterised by a sustainable ‘green’ path of growth. We profile a number of clean energy ETFs that are likely to benefit.

Research amongst IFAs by Legal & General Investments, shows that seven in ten advisers are concerned about the counterparty risks associated with derivative-based, or so-called synthetic, index funds and ETFs. The research found that, when asked about the counterparty risks associated with the products, two-fifths said they were very concerned with an additional 29% expressing that they were slightly concerned. In addition, six in ten advisers expressed concern over the counterparty risks associated with stock lending programmes.

According to data from Credit Suisse, European ETFs recorded inflows of $3,234m in May, though the result was skewed by the German-domiciled iShares DAX ETF (EXSI), which recorded inflows of $4,744m. May was a busy month for European ETF issuers, with 21 new launches. The highlight of the month was perhaps the launch of 5 ETFs by Vanguard – a much anticipated entry into the European market and one that may potentially change the dynamics of the market itself.

Vince Stanzione, a high-profile private investor, says that investing in Italy offers investors an excellent bet. Italy’s major stock market index, the MIB, is back down to near 2009 levels and down 13% so far this year. “Investors can use an ETF to track its performance,” says Stanzione. He agrees that this is a controversial contrarian trade and only advises using a small amount of risk capital, but “investing in Italy at these depressed levels could yield a 30% plus profit by year-end,” reckons Stanzione