Barron's Recap: What Europe Must Do

This weekend in Barron's online: a currency fix for the eurozone and a special report on exchange-traded funds. Cover Story "The Euro's Fate" by Randall W. Forsyth. The only way left to save the euro may be to debase the euro, suggests this article. The cure for what ails Europe is growth, and the quickest way to spur growth is via monetary reflation. A euro at parity with the U.S. dollar could restore Europe's competitiveness, end its debt crisis and save its currency. As expensive a proposition as that might be, it would be less costly than a breakup of the common currency. However, European Union officials have pushed spending cuts and tax hikes instead. But there is reason to doubt that budget austerity and reform will yield success. A euro at parity with the dollar would boost the whole European economy by easing the debt crisis that weighs on the entire world economy and markets, concludes the article. Check it out for full details. Feature Stories "Is the New Money Market Fund an ETF?" by Sarah Max discusses actively managed, ultra-short fixed-income ETFs that are being marketed as an alternative to money-market funds. The article offers details to know before heading into unchartered waters. Just two of the ETFs investors might use in lieu of money-market funds are the Pimco Enhanced Short Maturity ETF MINT and SPDR Barclays 1-3 Month T-Bill BIL. Brendan Conway's "Why ETFs' Good Times Can't Last Forever" questions whether the phenomenal growth rate of ETFs can continue. The funds have been expanding their assets at a rate of more than 30% a year for 10 years. Now, exchange-traded funds have $1.2 trillion in assets in 1,476 funds, which account for nearly one-third of U.S. equity trading. Not bad for an industry that did not even exist two decades ago. In "Choosing the Right Dividend ETF for You," Jon Birger points out that dividends are the hottest niche in exchange-traded funds now, what with the dividend yield of the Standard & Poor's 500 exceeding the interest rate on 10-year U.S. Treasury bonds. But with 49 dividend ETFs to choose from, investors looking for income can be overwhelmed. This article takes a closer look at some big differences in how these funds operate and perform. Peter Carbonara 's "Does Your ETF Track?" asks, if most ETFs are supposed to be a mirror-image of the index they are based on, why do some funds do a better job than others at delivering the same returns as the index? Anything that costs investors money is worth paying attention to, says the article, especially when it is fairly easy to avoid. "Will Big Institutions Upend the Little Guy?" also by Brendan Conway, suggests that the ETF industry's push to attract large asset managers and pension funds might backfire if small investors think they will get hurt by it. While many small-time investors already are on board the ETF train, drawn by low fees, ease of trading and the variety of options, a recent survey indicates that as few as 14% of institutions use ETFs. Columns Columns in this weekend's Barron's discuss:

• The latest member of the Ponzi schemer's gallery
• The influence the presidential election will have on the markets
• A look at toymaker Jakks Pacific JAKK
• How Barron's stock picks are faring
• The Greased Palm Index, which reflects political donations by corporate America
• How to play tech stocks, given disappointing earnings
• A new service from Zack's that tracks institutional investors
• And more ...