On valuation, U.K. stocks are pricier than some major Eurozone markets, but attractively valued relative to other large developed markets, including the U.S.
“The FTSE 100’s one-year forward, positive-adjusted price earnings multiple (p/e) of 16.8x is on par with Spain, more expensive than that of the French CAC’s and German DAX’s p/e ratios and cheaper than the multiples of their Danish, Dutch, Italian, Portuguese, Canadian, US, Japanese and Swiss rivals despite the fact that the FTSE 100’s p/e exceeds its twenty-two year historical average (16.0x). On a relative valuation basis, FTSE 100 shares appear inexpensive by comparison with the S&P Europe 350 at -0.3,” said S&P Capital IQ.
Investors looking for a pure proxy on the FTSE 100 can consider the Recon Capital FTSE 100 ETF (NasdaqGS: UK), the first U.S.-listed ETF to track the U.K.’s benchmark FTSE 100 index.
All of the FTSE 100’s, and in turn UK’s, top 10 holdings trade in New York. That group, which combined for about 39% of the index’s weight at the end of March, includes familiar names such as HSBC (NYSE: HBC),BP (NYSE: BP) Royal Dutch Shell (NYSE: RDS-A) and GlaxoSmithKline (NYSE: GSK). [Finally, a FTSE Tracking ETF in the U.S.]
iShares MSCI United Kingdom ETF
