Diversify Into European Stocks With This ETF
If you're worried about North American stocks this year, it may be a good idea to consider diversifying to other parts of the world. An attractive opportunity may be to invest in Europe, which is home to some of the biggest companies in the world. One way you can do that is by investing in the iShares Europe ETF (NYSE Arca:IEV), which gives investors broad exposure to European stocks. With 363 holdings, the fund offers a solid cross-section of many different sectors and industries.
At 17%, financials account for the largest sector in the fund, followed by healthcare and industrials which are both at around 15%. Consumer staples and consumer discretionary account for 13% and 11% of the holdings, respectively, and are the only other sectors to make up at least 10% of the fund.
Some of the biggest names in the exchange-traded fund (ETF) include Nestle (OTC:NSRGY), Novo Nordisk (NYSE:NVO), and Novartis (NYSE:NVS). However, no stock makes up even 4% of the fund's total weight, ensuring that no single holding's performance will have a drastic impact on the overall fund.
The ETF's expense ratio of 0.58% isn't the cheapest around but it's in line with many other similar funds. Investors are getting some good value with this investment as well as the iShares Europe ETF averages a price-to-earnings multiple of 14.2 and its price-to-book ratio of two also isn't high. Its yield of 3% is above average and can give investors some decent dividends on top of all that diversification and value.
Investors looking to globalize their portfolio should consider investing in the iShares Europe ETF.
Provided Content: Content provided by Baystreet. The Globe and Mail was not involved, and material was not reviewed prior to publication.