Chart o’ the Day: European Stock ETFs

We got a ton of feedback this week from my post about our overweight European equities positioning. For the first time in awhile, investors seem to be waking up to the idea that there may be money to be made in a market outside of US large cap stocks.

I was playing around on ycharts.com and pulled together a look at the top Europe stock ETFs.

The YTD performance of the top five largest by assets can be seen below. On a one-year basis, WisdomTree’s product (in red) – which hedges out the euro exposure – is leading, but this year it is lagging as you can see. The appreciation of the euro currency has been one of this year’s biggest surprises. Having exposure to both the rising currency and the rising stock prices of the continent simultaneously has given investors performance that is double the S&P 500 so far in 2017.

Let’s look at the expanded universe of European stock ETFs – there are only 15 of them with more than $100 million in assets. Here I have YTD flows, performance, etc. The WisdomTree product is losing assets under management as a result of the newfound enthusiasm for “double” euro exposure – stocks and currency. However, the currency-hedged Europe ETF from Deutsche actually saw positive inflows this year:

The biggest flows – over $2 billion this year – came into EZU, which is the Euro Zone countries-only product from iShares. No Switzerland, no United Kingdom. This tells you that investors are really trying to play the theme of a European economic recovery and capture the potential of the lower multiples on German, French, Spanish, Belgian and Italian stocks. This fund is up almost 20% in total return in just the first 5 months of this year.

Vanguard’s $20 billion VGK product, which will own the countries outside the Euro Zone, has taken in just $200 million YTD and trails EZU slightly with a total return of almost 18% this year.

There are lots of ways to get this sort of exposure, and, as always, some will look better than others over select periods for reasons that are beyond our ability to forecast.

You can talk to us about how your portfolio is positioned right here. Certified Financial Planners and portfolio specialists are standing by.

Read Also:

What We’re Telling Clients About European Stocks (TRB)

Source:

ycharts.com

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. offshore vps commented on Sep 14

    … [Trackback]

    […] Find More on to that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  2. w88 commented on Sep 20

    … [Trackback]

    […] Here you can find 30443 additional Information on that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  3. immediate edge bitcoin commented on Sep 28

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  4. immediate edge reviews commented on Oct 01

    … [Trackback]

    […] Find More to that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  5. RPA vs Test Automation commented on Nov 12

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  6. 사설토토 commented on Dec 10

    … [Trackback]

    […] Info on that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  7. 사설토토 commented on Dec 24

    … [Trackback]

    […] There you can find 67966 additional Info to that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  8. kids swimming commented on Dec 31

    … [Trackback]

    […] Information to that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  9. this content commented on Jan 05

    … [Trackback]

    […] Here you will find 74437 more Information to that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  10. human hair wigs commented on Jan 16

    … [Trackback]

    […] Here you will find 54238 more Info on that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]

  11. Regression Testing commented on Jan 19

    … [Trackback]

    […] Here you can find 76393 more Info to that Topic: thereformedbroker.com/2017/05/28/chart-o-the-day-european-stock-etfs/ […]