ETF Chart of the Day: New Europe Idea

With another flattish Monday playing out in the early going in U.S. equities, we might as well shift gears back to European equity ETF coverage given the jump in interest in the space that was evident all last week.

Source is a well-known ETF provider in Europe, ranked the fifth largest there in terms of size, and the firm recently made a foray into the U.S. listed market with ESTX (Source Euro STOXX 50, Expense Ratio 0.16%).

According to fund literature, the fund “aims to provide the performance of the EURO STOXX 50 Net Return Index, Europe’s leading blue chip index for the Eurozone.” Furthermore, “The Index covers 50 stocks from 12 Eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, The Netherlands, Portugal and Spain.

Investors buying and selling in USD will be exposed to fluctuations in the rate of exchange between the Euro (EUR) and their trading currency.”

ESTX takes on the much larger and more established FEZ (SPDR DJ EURO STOXX 50, Expense Ratio 0.29%) which we have mentioned time and again here because it sees good daily traffic and is the fifth largest Europe Equity focused ETF in the U.S. listed landscape with $4.1 billion in AUM. ESTX of course notably has a lower net expense ratio and the fund has quietly pulled in >$40 million in assets since its September ’14 inception.