Yesterday, the European Central Bank finally announced the much anticipated program to purchase government bonds and other securities. Markets rejoiced the move as the scale of proposed purchases as well as its open-ended nature was ahead of expectations.

The ECB plans to buy €60 billion of government bonds, debt securities issued by European institutions and private sector bonds per month, through September 2016, compared to earlier expectation of €500 billion of government bonds annually.

Economic recovery in the zone has been very weak and inflation has tumbled. This aggressive stimulus is expected to be more effective than various measures tried by the ECB earlier. It should benefit stocks and further weaken the currency. Thus investors should consider investing in currency hedged Europe ETFs.

Some of the ETFs that provide exposure to European stocks while eliminating currency risk include: WisdomTree Europe Hedged Equity ETF (HEDJ - ETF report), db X-trackers MSCI Europe Hedged Equity Fund (DBEU - ETF report), iShares Currency Hedged MSCI EMU ETF (HEZU - ETF report) and Deutsche X-trackers MSCI EMU Hedged Equity (DBEZ - ETF report).

The big surprise last week came from the Swiss National Bank, who removed their 3 year old cap on the value of the Swiss franc. On that day the Franc soared against the Euro, and Swiss stocks plunged since a strong currency would impact earnings of export and tourism industries. Swiss economy is heavily dependent on exports and 60% of Swiss exports go to the euro zone and the United States.

To learn more, please watch the short video below (running length 00:05:31)