“But for value investors, the bear market conditions may finally have begun to lead a revival in sectors such as telecoms and utilities, which recently have outperformed growth areas,” according to Morningstar.
European financials, which account for almost 9% of EUDV’s weight, also offer some opportunity.
“We are positive on the financial services sector, which sold off heavily despite an improved regulatory outlook and stronger capital position. In 2019, it should benefit from a strengthening in the European economy and a rebound in investor confidence, which has fallen to low levels off the back of geo-political instability,” said Morningstar.
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