“We find the most attractive European sectors versus their US counterparts are utilities, insurance, banks, energy and autos. Food and beverages, consumer services, media, capital goods and retailing are among the most expensive,” wrote Patel.
The $4.3 billion EZU’s largest sector weight is 21.6% to financial services. Energy and utilities combine for nearly 13% of the fund’s weight. The $1.8 billion IEV has an almost 21% allocation to financials with energy and utilities combining for nearly 14%. Europe’s three largest oil companies – Royal Dutch Shell (NYSE: RDS-A), BP (NYSE: BP) and Total (NYSE: TOT) – are all top-10 holdings in VGK.
Vanguard FTSE Europe ETF
ETF Trends editorial team contributed to this post.