At a glance
RFEU charges 0.83% a year, above the 0.25% average of the 7 funds most like it (the most expensive of 8). It has $7.2M in assets, the 8th largest of that group; it paid 0.89% of its price in distributions over the past 12 months, annual. Over the past year it returned +5.0% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +14.8% a year. At its worst it fell 35.7% in the 2020 crash (S&P 500: 33.7%) and 35.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 8 months and 32 months after the lows. Its ten largest positions make up 28.1% of the fund, out of 87 in all.
The short version
First Trust RiverFront Dynamic Europe ETF (RFEU) holds European stocks chosen by RiverFront Investment Group using value, quality and momentum scores. It may suit investors who want an actively managed take on Europe, with currency hedging (offsetting exchange-rate swings) on anywhere from 0% to 100% of the portfolio. But its 0.83% yearly fee is the highest of eight similar Europe funds, and its $7.2 million in assets (as of October 31, 2025) the smallest.
Price history
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RFEU +5.0% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| RFEU price data to Oct 27, 2026 | +1.5% | +5.0% | +14.8% | +3.4% | +7.1% | +7.0% |
- Over the year to Oct 27, 2026, RFEU returned +5.0%, 8th of 8 among similar funds.
- Its 5-year annualized return was +3.4% and its 10-year +7.1%.
- In the 2020 COVID crash it fell 35.7% and regained its old high 7.7 months after the low.
- Its worst full calendar year was 2022 (-24.2%); its best was 2025 (+30.8%).
- The deepest fall in its price history was 39.7% (Jan 26, 2018 to Mar 23, 2020), recovered by Dec 28, 2020.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +1.5% |
| 2025 | +30.8% |
| 2024 | -1.8% |
| 2023 | +16.2% |
| 2022 | -24.2% |
| 2021 | +22.8% |
| 2020 | +6.2% |
| 2019 | +23.3% |
| 2018 | -17.5% |
| 2017 | +26.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 35.7% over that stretch · deepest drop along the way 35.7%, back to its old high 7.7 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 34.1% over that stretch · deepest drop along the way 35.1%, back to its old high 31.7 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2025 | $2.1500 | -33.0% |
| 2024 | $3.2100 | +50.0% |
| 2023 | $2.1400 | -24.1% |
| 2022 | $2.8200 | +98.6% |
| 2021 | $1.4200 | -6.0% |
| 2020 | $1.5100 | -22.2% |
| 2019 | $1.9400 | +29.3% |
| 2018 | $1.5000 | +70.5% |
| 2017 | $0.8800 |
What's inside
As of Oct 31, 2025, the fund held 87 securities; the ten largest made up 28.1% of assets.
| Holding | Weight | |
|---|---|---|
| ASML Holding NV | 4.88% | |
| Nokia Oyj | 3.35% | |
| Novartis AG | 2.98% | |
| Nestle SA | 2.84% | |
| BBVA | 2.66% | |
| Roche Holding AG | 2.50% | |
| Allianz SE | 2.43% | |
| 3i Group PLC | 2.23% | |
| LVMH Moet Hennessy Louis Vuitt | 2.14% | |
| Unilever PLC | 2.09% | |
| Shell PLC | 2.08% | |
| Mercedes-Benz Group AG | 1.97% | |
| Bouygues SA | 1.96% | |
| TotalEnergies SE | 1.94% | |
| Drax Group PLC | 1.92% |
By country
United Kingdom 29.53%Switzerland 11.76%France 11.62%Germany 7.87%Italy 7.2%By asset type
Stocks 100.14%What changed recently
- Over the three months to Oct 31, 2025, investors added a net $0.00 (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +3.88%, +2.13%, +2.45%.
How it works
RFEU does not track an index. First Trust's sub-advisor, RiverFront Investment Group, puts at least 80% of net assets in European companies. A company counts as European based on where its shares mainly trade, where it is based, or whether it earns at least half its revenue or profit in Europe. Up to 20% can go elsewhere, with a focus on Canada, Israel and the United States.
RiverFront scores eligible stocks on value (such as price compared with book value, a company's net worth on its books), quality (such as cash relative to market value) and momentum (price trend), and favors the top scorers. A proprietary optimization keeps the portfolio within country, sector and risk limits, such as beta, a gauge of how much a stock moves with the market. The process is largely rules-based, with room for manager judgment on holdings and weights. Turnover, the share of holdings replaced in a year, was 21%.
A US holder of European stocks also gains or loses as the euro, pound and Swiss franc move against the dollar. RFEU can hedge, or offset, 0% to 100% of that currency exposure using forward contracts, which lock in an exchange rate for a future date, and spot trades. Hedging cushions losses when European currencies weaken but gives up gains when they strengthen. On October 31, 2025, the fund held no derivatives, so no hedges were in place.
What it really costs
- RFEU charges 0.83% a year, versus an average of 0.25% for the similar funds below (8th of 8, cheapest first).
In a retirement portfolio
It is a small, single-region, actively managed stock fund with a 0.83% fee and past drops of about 35%, which fits a modest slice more than a core position.
RFEU can broaden a US-focused portfolio, but it has not cushioned downturns. It launched after the 2008 crisis. In the 2020 COVID crash it fell 35.7% and recovered 7.7 months after the March low. In the 2022 bear market it fell 35.1% and took 31.7 months from its September 2022 low to recover. Its worst calendar year was 2022, a 24.2% loss, and its deepest drop was 39.7%, from January 2018 to March 2020. Someone who must withdraw money during drops like these may end up locking in losses.
Income is modest: the yield over the past 12 months was 0.89% as of October 27, 2026, paid once a year. Its 0.83% fee is well above the 0.25% average of similar Europe funds. Past results don't predict future ones, and a plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want European stocks picked by value, quality and momentum scores instead of an index, and who accept a 0.83% fee.
- Those who like the option of currency hedging, which RiverFront can set anywhere from 0% to 100% of the portfolio.
- Investors adding a small European slice who are comfortable with stock-market swings, including a 24.2% loss in 2022 and a 30.8% gain in 2025.
Look elsewhere if
- Cost-focused investors: Vanguard FTSE Europe ETF (VGK) charges 0.06%, versus RFEU's 0.83%, the highest of eight similar Europe funds compared.
- Investors wary of very small funds: RFEU had $7.2 million in assets as of October 31, 2025, the smallest of its peer group.
- Performance-focused investors: as of October 27, 2026, RFEU trailed all seven similar funds over one year (5%) and three years (14.8% a year).
Close alternatives
Matched by holdings overlap from the latest N-PORT reports.
| Fund | Overlap | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|---|
| RFEU this fund | — | 0.83% | $7.2M | +5.0% | +14.8% |
| BBEU JPMorgan BetaBuilders Europe ETF | 29% | 0.09% | $9.36B | +9.5% | +19.8% |
| IEV iShares Europe ETF | 28% | 0.61% | $1.63B | +9.5% | +19.4% |
| IEUR iShares Core MSCI Europe ETF | 26% | 0.09% | $8.95B | +9.6% | +19.9% |
| SPEU SPDR Portfolio Europe ETF | 26% | 0.07% | $713.1M | +9.4% | +19.9% |
| VGK Vanguard FTSE Europe ETF | 24% | 0.06% | $38.51B | +11.9% | +19.7% |
| FEZ SPDR EURO STOXX 50 ETF | 21% | 0.29% | $4.35B | +5.6% | +20.6% |
| EZU iShares MSCI Eurozone ETF | 21% | 0.51% | $9.91B | +6.8% | +21.0% |
Questions investors ask
Is RFEU expensive compared with other Europe ETFs?
Yes, compared with similar funds. RFEU's expense ratio, the yearly fee deducted from fund assets, is 0.83%, according to its prospectus filed February 28, 2025. That is the highest of eight Europe funds compared; the other seven average 0.25%. Vanguard FTSE Europe ETF (VGK) charges 0.06%, SPDR Portfolio Europe ETF (SPEU) 0.07% and iShares Europe ETF (IEV) 0.61%. Over many years, a gap like that can noticeably reduce what an investor keeps.
Is RFEU currency hedged?
Sometimes. RFEU can hedge anywhere from 0% to 100% of its exposure to European currencies, using forward contracts and spot currency trades, and the hedged portion can vary widely. Hedging softens the hit when the euro, pound or Swiss franc falls against the dollar, but it gives up the boost when they rise. As of October 31, 2025, the fund's holdings report showed no derivatives, so no currency hedges were in place on that date.
What's the difference between RFEU and BBEU?
Mainly cost, size and approach. JPMorgan BetaBuilders Europe ETF (BBEU), whose holdings overlap most with RFEU's at 29%, charges 0.09% a year versus 0.83% for RFEU. BBEU had about $9.4 billion in assets as of July 31, 2026; RFEU had $7.2 million as of October 31, 2025. RFEU picks stocks using value, quality and momentum scores and can hedge currency. As of October 27, 2026, BBEU returned 9.5% over one year and 19.8% a year over three, versus 5% and 14.8% for RFEU.
Does RFEU pay a dividend?
Yes, but it is small and paid once a year. Over the 12 months through October 27, 2026, RFEU paid $0.68 per share, a yield of 0.89%. The fund's stated objective is capital appreciation, meaning growth in share value, so its payout simply reflects dividends from European holdings such as Nestle, Novartis and Shell. Investors who depend on regular cash flow may find an annual payment of that size of limited use.
What are RFEU's top holdings?
As of October 31, 2025, RFEU held 87 stocks, and its 10 largest made up 28.1% of assets. ASML Holding led at 4.9%, followed by Nokia (3.4%), Novartis (3.0%), Nestle (2.8%), BBVA (2.7%), Roche (2.5%) and Allianz (2.4%). By country, the United Kingdom was the largest weight at 29.5%, followed by Switzerland (11.8%), France (11.6%) and Germany (7.9%). Because the managers can change holdings and weights, these figures shift over time.