A New ETF Route to Europe

Like IEV, IEUR allocates about 41% of its weight to the U.K. and Switzerland and the top-10 lineups of both ETFs are similar, though not exact matches. Overall, IEUR allocates about 49% of its weight to countries that are not Eurozone members.

However, that means the new ETF has greater Eurozone exposure than does VGK, which devotes just 47% of its weight to Eurozone nations. IEUR also offers some small-cap exposure, which could prove advantageous if European stocks continue rebounding.

“By adding small cap stocks, Investable Market Indexes (IMI) provide broader market exposure than non-IMI (standard) indexes, which include large- and mid-cap only,” according to iShares.

IEUR Country Weights

Chart Courtesy: iShares

Tom Lydon’s clients own shares of HEDJ and IEMG.