Key Takeaways
- Europe equity income ETFs have outperformed active funds over 10 years.
- Over the last 12 months, Europe equity income funds as a whole have outperformed the Morningstar Europe Index.
- Three best-performing equity income funds all have a Morningstar Medalist Rating of Silver.
European equity income ETFs have outperformed active funds in the short and long term: according to Morningstar’s latest European Active/Passive Barometer, the success rate of active managers relative to ETFs and index funds in the same Morningstar Category was 14.7% over the last year and zero over the decade to June 30, 2025. This means that portfolio managers had a low probability of beating a basket of passive products.
To screen for the top-performing ETFs in this category, we looked for those with the best returns over the last one, three and five years.
- Amundi Stoxx Europe Select Dividend 30 UCITS ETF SEL
- Franklin European Quality Dividend UCITS ETF FLXD
- iShares STOXX Europe Select Dividend 30 UCITS ETF (DE) EXSH
Equity Income Funds Beat the Index
Over the last 12 months, Europe equity income funds, which include active and passive funds, have returned 16.31%. On an annualized rate, Europe equity income funds have returned 11.07% over the last three years and gained 11.16% over the last five years. That compares with the Morningstar Europe Index, which has returned 13.95% over the last 12 months, gained 11.12% per year over the last three years, and gained 11.57% per year over the last five years.
What Are Europe Equity Income ETFs?
Exchange-traded funds can offer a simple and inexpensive way to gain exposure to emerging markets stocks, and some of these ETFs are highly rated by Morningstar analysts.
Europe equity income portfolios invest principally in European equities that pay out above-market yields. Funds in this category can be invested in companies of any size, though many exhibit a large-cap bias.
Screening for the Top-Performing Europe Equity Income ETFs
To find the best Europe equity income ETFs, we looked at returns data from the past one, three, and five years, using data available in Morningstar Direct. We screened for Europe-domiciled exchange-traded funds in the top 33% of the category using their lowest-cost primary share classes for those periods. We also filtered for funds with a Morningstar Medalist Rating of Bronze, Silver, or Gold. We excluded funds with assets under EUR 100 million. This left three funds.
Top Europe Equity Income ETFs
Amundi Stoxx Europe Select Dividend 30 UCITS ETF
- Ticker: SEL
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★
The EUR 256.5 million fund has climbed 35.41% over the past 12 months, outperforming the average fund in its category, which rose 16.31%. The Amundi fund, which was launched in February 2024, has climbed 14.57% over the past three years and gained 14.59% over the past five years.
Franklin European Quality Dividend UCITS ETF
- Ticker: FLXD
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★★
Over the past 12 months, the EUR 423 million fund has gained 25.04%, while the average fund in its category is up 16.31%. The Franklin Templeton fund, which was launched in September 2017, has climbed 13.77% over the past three years and gained 13.74% over the past five years.
iShares STOXX Europe Select Dividend 30 UCITS ETF (DE)
- Ticker: EXSH
- Morningstar Medalist Rating: Silver
- Morningstar Rating: ★★★★★
Over the past 12 months, the EUR 504.7 million fund has gained 35.73%, while the average fund in its category is up 16.31%. The iShares fund, which was launched in May 2005, has climbed 14.80% over the past three years and gained 14.70% over the past five years.
