Core Viewpoint - European equities and related ETFs are experiencing a significant rebound, with expectations that performance in 2025 could be matched or exceeded next year, emphasizing the importance of a quality-focused investment approach [1][2]. Group 1: Investment Performance - The WisdomTree Europe Quality Dividend Growth Fund (EUDG) has increased by 20.20% year-to-date, highlighting the advantages of prioritizing quality in European investments [2]. - EUDG offers a dividend yield of nearly 3%, which is supported by strong quality characteristics, making it a reliable income source for long-term investors [3]. Group 2: Sector Analysis - EUDG holds 230 stocks, with over 37% of its portfolio allocated to industrial and financial services sectors, which are expected to show significant earnings per share (EPS) growth next year [5]. - The quality factor in European stocks is comparable to that in the U.S., making EUDG's strategy relevant and easily understandable for investors [4]. Group 3: Market Trends - The combination of quality and European stocks has underperformed in recent years, but experts anticipate a shift that could positively impact EUDG's future performance [6]. - Sector allocation has played a significant role in performance, with nearly half of the last 12 months' performance attributed to sector biases [7].