"If you look at the IHDG, they tend to strip out a lot of the financials, so it's the higher-quality stocks within Europe" that don't carry the same risk profiles as the broader European indices, Davi said.
Alfred Eskandar, co-founder, president and chief operating officer at Salt Financial, said investors have to make a call on what's going to happen in the euro zone before buying in. "If you look at the European markets, [they're] decentralized. You've got different political issues in each region. Certainly, Brexit for the last year and a half has not helped build any confidence [or] consensus," Eskandar said in the same "ETF Edge" interview.
"When you're looking at Europe, you've got to look at it in two ways: One is do you believe that there's going to be some [quantitative easing] out of the [European Central Bank], and if so, then you're going to need something that's currency-hedged," he said. "If not, then you're going to want to look for broad regional or even specific-country exposure.