This region has been where the most recent controversy has plagued markets over the past year creating volatile and uncertain conditions. As this is occurring markets are rebounding and reversing severe losses from 2011. That said the markets within the region are hyper news driven and thus accident prone.
There are only 11 U.S. listed ETFs as single country funds. Separate from the union currently are England, Switzerland, Russia and Poland for example and it remains to be seen if they would even want to join given conditions. These country ETFs will be maintained in a separate list. Greece (GREK) is a new issue from Global X which also has funds in registration for Portugal, Hungary and Czechoslovakia among others
We feature a technical view of conditions from monthly chart views. Simplistically, we recommend longer-term investors stay on the right side of the 12 month simple moving average. When prices are above the moving average, stay long, and when below remain in cash or short.
Premium members to the ETF Digestreceive added signals when markets become extended such as DeMark triggers to exit overbought/oversold conditions.
EWI follows the MSCI Italy Index. The fund was launched in March 1996. The expense ratio is .54%. AUM equal $ 148 million (rising sharply since July 2011 as investors speculate on a successful bailout.) and average daily trading volume is (down by 40% since the same 2011 period) 324K shares.
As of mid-February 2012 the annual dividend yield was 4.36% and YTD return was 10.59% (a reversal from the lows of early November 2011 of -17.32 %.) The one year return was -25.56% which reflects the high volatility.
Data as of First Quarter 2012
EWI Top Ten Holdings & Weightings
EniSpA (ENI): 22.48%
ENEL EnteNazionale per L'EnergElet SPA (ENEL): 10.70%
EWP follow the MSCI Spain Index. The fund was launched in March 1996. The expense ratio is .54%. AUM equal $118 million and average daily trading volume is 131K shares.
As of mid-February 2012 the annual dividend yield was 9.52% (can it hold?) and YTD return was 4.89%. The one year return was -15.38% which reflects the high volatility, sovereign and bank credit downgrades.
Data as of First Quarter 2012
EWP Top Ten Holdings & Weightings
Telefonica SA (TEF): 20.73%
Banco Santander SA (SAN): 19.43%
Banco Bilbao VizcayaArgentaria SA (BBVA): 11.29%
Industria de DiseñoTextil,S.A."inditex" (ITX): 5.04%
Repsol YPF SA (REPYF): 4.88%
Iberdrola SA (IBE): 4.47%
AbertisInfraestructuras SA (ABE): 2.80%
Gas Natural Sdg, S.A. (GAS): 2.50%
ACS Actividades de Construccion y Servicios SA (ACS): 2.23%
EIRL follows the MSCI Ireland Investable Market 25/50 Index. The fund was launched in May 2010. The expense ratio is .53%. AUM equal $7.5 million which is attributable to its more recent launch and current uncertainties. Average daily trading volume is 10K shares.
As of mid-February 2012 the annual dividend yield was 2.04% and YTD return was 10.32%. The one year return was -1.31%.
Data as of First Quarter 2012
EIRL Top Ten Holdings & Weightings
CRH PLC (CRH): 21.92%
Elan Corp PLC (DRX): 13.15%
Kerry Group PLC (KRZ): 10.10%
Smurfit Kappa Group PLC (SK3): 5.10%
Bank of Ireland (Governor & Company of) (BIR): 5.09%
EWK follows the MSCI Investable Belgium Market Index. The fund was launched in March 1996. The expense ratio is .54%. AUM equal $27 million (down nearly by half since July 2011) with average daily trading volume of 32K shares.
As of mid-February 2012 the annual dividend yield was 5.09% and YTD return was 8.31%. The one year return was -11.54%..
EWO follows the MSCI Austria Investable Index. The fund was launched in March 1996. AUM equal $72 million (down 50% since July 2011) and average daily trading volume is 110K shares. As of mid-February 2012 the annual dividend yield was 3.82% and YTD return was 13.92% (a reversal from the lows of early November 2011 of -17.32 %.) The one year return was -25.56% which reflects the high volatility.
It should be noted Austria serves as one of the major financial centers for Eastern Europe along with Switzerland.
Data as of First Quarter 2012
Top Ten Holdings & Weightings
Omv AG (OMVJF): 12.81%
Erste Bank deroesterreichischenSparkassen AG (EBS): 10.25%
NORW follows the FTSE Norway 30 Index which measures the broad equity market performance of Norway. The fund was launched in November 2010. The expense ratio is .50%. AUM equal $50 million and average daily trading volume is 71K shares.
As of mid-February 2012 the annual dividend yield was 2.72% and YTD return was 15.15%. The one year return was -8.66%.
EWN follows the MSCI Netherlands Investable Market Index. The fund was launched in March 1996. The expense ratio is .53%. AUM equal $65 million and averaged daily trading volume is 77K shares.
As of mid-February 2012 the annual dividend yield was 3.06% and YTD return was 4.70%. The one year return was -16.40%.
EWQ follows the MSCI France Index. The fund was launched in March 1996. The expense ratio is .54%. AUM equal $261million and average daily trading volume is 298K shares. As of mid-February 2012 the annual dividend yield was 3.22% and YTD return was 8.48%.
The one year return was -16.69% which reflects the high volatility.
EWD follows the MSCI Sweden Index. The fund was launched in March 1996. The expense ratio is .52%. AUM equal $338 million and average daily trading volume is 275K shares.
As of mid-February 2012 the annual dividend yield was 3.89% and YTD return was 12.01%. The one year return was -7.96%.
EWG follows the MSCI Germany Index and nothing really needs to be said beyond this. The fund was launched in March 1996. The expense ratio is .53%. AUM equal $3 billion and average daily trading volume is nearly 4M shares. As of mid-February 2012 the annual dividend yield was 3.17% and YTD return was 14.88%. The one year return was -12.21%.
Data as of First Quarter 2012
EWG Top Ten Holdings & Weightings
Siemens AG (SIE): 10.26%
Basf SE (BFFAF): 8.61%
Bayer AG (BAYN): 7.00%
Sap AG ADR (SAP): 6.47%
Allianz SE (ALIZF): 6.18%
Daimler AG (DDAIF): 6.01%
Deutsche Bank AG (DB): 4.95%
E.ON Aktiengesellschaft (EOAN): 4.55%
Deutsche Telekom AG (DTE): 3.92%
BayerischeMotorenWerke AG (BAMXF): 3.37%
We rank the top 10 ETF by our proprietary stars system as outlined below. However, given that we’re sorting these by both short and intermediate issues we have split the rankings as we move from one classification to another.
Strong established linked index Excellent consistent performance and index tracking Low fee structure Strong portfolio suitability Excellent liquidity
Established linked index even if “enhanced” Good performance or more volatile if “enhanced” index Average to higher fee structure Good portfolio suitability or more active management if “enhanced” index Decent liquidity
Enhanced or seasoned index Less consistent performance and more volatile Fees higher than average Portfolio suitability would need more active trading Average to below average liquidity
Index is new Issue is new and needs seasoning Fees are high Portfolio suitability also needs seasoning Liquidity below average
The euro zone and EMU (European Monetary Union) is a cauldron of episodic controversy these days. One day things look better and the next the entire EU and EMU appears as it will collapse. It’s my belief these issues will continue for a long time. Therefore, investors are advised to follow the monthly 12 period moving average as noted above until a real fix is in place. When prices finally rise above the monthly 12 period moving averages it may act as a confirmation for you. Currently with only a week to go in February some markets are moving above this level.
iShares dominates the list having been first to the single country ETFs many years ago. At some point, it should be expected that lower cost sponsors will attempt to enter the fray whether it be Focus Shares, Schwab or Vanguard to name a few. .
As stated with other sectors, remember ETF sponsors must issue and their interests aren’t necessarily aligned with yours. They have a business interest and wish to have a competitive presence in any popular sector.
For further information about portfolio structures using technical indicators like DeMark and other indicators, take a free 14-day trial at ETF Digest. Follow us on Twitter and Facebook as well and join our group conversations.
This region has been where the most recent controversy has plagued markets over the past year creating volatile and uncertain conditions. As this is occurring markets are rebounding and reversing severe losses from 2011. That said the markets within the region are hyper news driven and thus accident prone.
There are only 11 U.S. listed ETFs as single country funds. Separate from the union currently are England, Switzerland, Russia and Poland for example and it remains to be seen if they would even want to join given conditions. These country ETFs will be maintained in a separate list. Greece (GREK) is a new issue from Global X which also has funds in registration for Portugal, Hungary and Czechoslovakia among others
We feature a technical view of conditions from monthly chart views. Simplistically, we recommend longer-term investors stay on the right side of the 12 month simple moving average. When prices are above the moving average, stay long, and when below remain in cash or short.
Premium members to the ETF Digest receive added signals when markets become extended such as DeMark triggers to exit overbought/oversold conditions.
#10: iShares Italy ETF (EWI)
EWI follows the MSCI Italy Index. The fund was launched in March 1996. The expense ratio is .54%. AUM equal $ 148 million (rising sharply since July 2011 as investors speculate on a successful bailout.) and average daily trading volume is (down by 40% since the same 2011 period) 324K shares.
As of mid-February 2012 the annual dividend yield was 4.36% and YTD return was 10.59% (a reversal from the lows of early November 2011 of -17.32 %.) The one year return was -25.56% which reflects the high volatility.
Data as of First Quarter 2012
EWI Top Ten Holdings & Weightings
#9: iShares Spain ETF (EWP)
EWP follow the MSCI Spain Index. The fund was launched in March 1996. The expense ratio is .54%. AUM equal $118 million and average daily trading volume is 131K shares.
As of mid-February 2012 the annual dividend yield was 9.52% (can it hold?) and YTD return was 4.89%. The one year return was -15.38% which reflects the high volatility, sovereign and bank credit downgrades.
Data as of First Quarter 2012
EWP Top Ten Holdings & Weightings
#8: iShares Ireland ETF (EIRL)
EIRL follows the MSCI Ireland Investable Market 25/50 Index. The fund was launched in May 2010. The expense ratio is .53%. AUM equal $7.5 million which is attributable to its more recent launch and current uncertainties. Average daily trading volume is 10K shares.
As of mid-February 2012 the annual dividend yield was 2.04% and YTD return was 10.32%. The one year return was -1.31%.
Data as of First Quarter 2012
EIRL Top Ten Holdings & Weightings
#7: iShares Belgium ETF (EWK)
EWK follows the MSCI Investable Belgium Market Index. The fund was launched in March 1996. The expense ratio is .54%. AUM equal $27 million (down nearly by half since July 2011) with average daily trading volume of 32K shares.
As of mid-February 2012 the annual dividend yield was 5.09% and YTD return was 8.31%. The one year return was -11.54%..
Data as of First Quarter 2012
EWK Top Ten Holdings & Weightings
#6: iShares Austria ETF (EWO)
EWO follows the MSCI Austria Investable Index. The fund was launched in March 1996. AUM equal $72 million (down 50% since July 2011) and average daily trading volume is 110K shares. As of mid-February 2012 the annual dividend yield was 3.82% and YTD return was 13.92% (a reversal from the lows of early November 2011 of -17.32 %.) The one year return was -25.56% which reflects the high volatility.
It should be noted Austria serves as one of the major financial centers for Eastern Europe along with Switzerland.
Data as of First Quarter 2012
Top Ten Holdings & Weightings
#5: Global X Norway ETF (NORW)
NORW follows the FTSE Norway 30 Index which measures the broad equity market performance of Norway. The fund was launched in November 2010. The expense ratio is .50%. AUM equal $50 million and average daily trading volume is 71K shares.
As of mid-February 2012 the annual dividend yield was 2.72% and YTD return was 15.15%. The one year return was -8.66%.
Data as of First Quarter 2012
NORW Top Ten Holdings & Weightings
#4: iShares Netherlands ETF (EWN)
EWN follows the MSCI Netherlands Investable Market Index. The fund was launched in March 1996. The expense ratio is .53%. AUM equal $65 million and averaged daily trading volume is 77K shares.
As of mid-February 2012 the annual dividend yield was 3.06% and YTD return was 4.70%. The one year return was -16.40%.
Data as of First Quarter 2012
EWN Top Ten Holdings & Weightings
#3: iShares France ETF (EWQ)
EWQ follows the MSCI France Index. The fund was launched in March 1996. The expense ratio is .54%. AUM equal $261million and average daily trading volume is 298K shares. As of mid-February 2012 the annual dividend yield was 3.22% and YTD return was 8.48%.
The one year return was -16.69% which reflects the high volatility.
Data as of First Quarter 2012
EWQ Top Ten Holdings & Weightings
#2: iShares Sweden ETF (EWD)
EWD follows the MSCI Sweden Index. The fund was launched in March 1996. The expense ratio is .52%. AUM equal $338 million and average daily trading volume is 275K shares.
As of mid-February 2012 the annual dividend yield was 3.89% and YTD return was 12.01%. The one year return was -7.96%.
Data as of First Quarter 2012
EWD Top Ten Holdings & Weightings
#1: iShares German ETF (EWG)
EWG follows the MSCI Germany Index and nothing really needs to be said beyond this. The fund was launched in March 1996. The expense ratio is .53%. AUM equal $3 billion and average daily trading volume is nearly 4M shares. As of mid-February 2012 the annual dividend yield was 3.17% and YTD return was 14.88%. The one year return was -12.21%.
Data as of First Quarter 2012
EWG Top Ten Holdings & Weightings
We rank the top 10 ETF by our proprietary stars system as outlined below. However, given that we’re sorting these by both short and intermediate issues we have split the rankings as we move from one classification to another.
Strong established linked index
Excellent consistent performance and index tracking
Low fee structure
Strong portfolio suitability
Excellent liquidity
Established linked index even if “enhanced”
Good performance or more volatile if “enhanced” index
Average to higher fee structure
Good portfolio suitability or more active management if “enhanced” index
Decent liquidity
Enhanced or seasoned index
Less consistent performance and more volatile
Fees higher than average
Portfolio suitability would need more active trading
Average to below average liquidity
Index is new
Issue is new and needs seasoning
Fees are high
Portfolio suitability also needs seasoning
Liquidity below average
The euro zone and EMU (European Monetary Union) is a cauldron of episodic controversy these days. One day things look better and the next the entire EU and EMU appears as it will collapse. It’s my belief these issues will continue for a long time. Therefore, investors are advised to follow the monthly 12 period moving average as noted above until a real fix is in place. When prices finally rise above the monthly 12 period moving averages it may act as a confirmation for you. Currently with only a week to go in February some markets are moving above this level.
iShares dominates the list having been first to the single country ETFs many years ago. At some point, it should be expected that lower cost sponsors will attempt to enter the fray whether it be Focus Shares, Schwab or Vanguard to name a few. .
As stated with other sectors, remember ETF sponsors must issue and their interests aren’t necessarily aligned with yours. They have a business interest and wish to have a competitive presence in any popular sector.
For further information about portfolio structures using technical indicators like DeMark and other indicators, take a free 14-day trial at ETF Digest. Follow us on Twitter and Facebook as well and join our group conversations.
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The ETF Digest is long EWG, NORW and EIRL in a Lazy Portfolio and on our Selected ETF menu.
(Source for data is from ETF sponsors and various ETF data providers.)