So, deciding on entering the world of exchange traded funds (ETFs) with a particular eye on the European market? Well, there are a number of different funds to choose from.
It all depends on what you are specifically looking for. The various European funds have varying allocations to different companies in specific countries. They will also allow a potential investor a distinct amount of exposure with disparate expenses and performances.
Note that recent events have led the countries within the European Union to contemplate their economic hardship. The United Kingdom, a major percent holder in European ETFs, has also fallen on hard times with a recent announcement of its recession.
Nevertheless, people can still choose to invest in available European ETFs as new trends present themselves.
BLDRs Europe 100 ADR Index Fund (ADRU) has total assets of $15 million, 100 holdings, and an expense ratio of 0.30%. The fund is based on The Bank of New York Mellon Europe 100 ADR Index, a capitalization weighted index designed to track the performance of 100 European market-based depositary receipts.
Top 10 country allocations: U.K. 43.7%, France 11.3%, Switzerland 10.1%, Germany 9.4%, Spain 8.5%, Netherlands 4.4%, Italy 3.1%, Finland 2.1%, Denmark 1.1%, Ireland 1.1%
Sector allocations: consumer discretionary 3.3%, consumer staple 7.7%, energy 21.5%, financials 19.4%, health care 16.6%, industrials 4.7%, information tech 5.3, materials 6.5%, telecom services 13.7%, utilities 1.4%
Vanguard European ETF (VGK) has total assets of $16.9 billion, 513 holdings, and expense ratio of .12%. Vanguard European ETF tries to track the performance of a benchmark index that measures the investment return of stocks located in the major markets of Europe.
Top 10 country allocation: U.K. 30.2%, France 15.8%, Germany 13.5%, Switzerland 12.7%, Spain 7.0%, Italy 5.5%, Netherlands 3.8%, Sweden 3.1% Finland 2.1%, Denmark 1.3%.
PowerShares FTSE RAFI Europe Portfolio (PEF) has total assets of $4.5 million, 1000 holdings, and expense ratio of .75%. It is based on the FTSE RAFI Europe Index, which tracks the performance of the largest European equities.
Top 10 country allocations: U.K. 32.3%, France 17.1%, Germany 13.4%, Switzerland 8.7%, Italy, 7.5%, Spain 5.5%, Netherlands 4.7%, Sweden 3.3%, Finland 1.7%, Belgium 1.4%.
Sector allocations: consumer discretionary 9.9%, consumer staples 10.0%, energy 14.2%, financials 25.9%, health are 7.5%, industrials 8.3%, information tech 1.9%, materials 5.9%, telecom services 9.7%, utilities 6.8%.
iShares S&P Europe 350 Index (IEV) has total assets of $1.2 billion, 348 holdings, and an expense ratio of 0.60%. The index fund translates investment results that correspond to the performance, before fees and expenses, of stocks across a range of industries in continental Europe as represented by the S&P Europe 350 Index.
Top 10 securities holdings include: U.K. 11.5%, Switzerland 8.1%, France 2.7%, Spain 2.0%
Sector allocations: financials 18.5%, consumer staples 12.9%, energy 12.8%, health care 12.6%, industrials 8.6%, telecom services 8.6%, utilities 8.5%, consumer discretionary 7.4%, materials 6.8%, information tech 3.0%.
