ETF Spotlight: SPDR Dow Jones Euro STOXX 50

| About: SPDR EURO (FEZ)

ETF Spotlight on SPDR Dow Jones Euro STOXX 50 (NYSEARCA:FEZ), part of a weekly series.

Assets: $165.3 million

Objective: To track the performance of the EURO STOXX 50 Index, which tracks the performance of some of the largest companies across 19 subindexes.

Holdings: Some of the top European names, including Daimler (DAI), Banco Santander (STD), Siemens (SI), Bayer (OTC:BYERF) and Unilever (NYSE:UL).

What You Should Know

  • This fund gives its heaviest weighting to the financial sector, which accounts for nearly 32%; if you’re not feeling good about European banks, you may want to think twice.
  • Other sectors with around 9% to 10% exposure include industrials, utilities, telecommunications and energy.
  • The top countries in the fund – France and Germany, at 36.9% and 28.1% respectively – have more stable economic outlooks than the next two countries, Spain (13.9%) and Italy (9.8%).

The Latest News

  • After falling for a large part of this year, Europe and euro ETFs are on a winning streak; the euro alone is up 2.6% in the last two weeks.
  • FEZ is up 8.8% in the last two weeks and 18.7% in the last month.
  • The ETF is still 45% off its December 2007 high, so like many Europe ETFs, it may be bargain-priced.
  • Sentiment toward Europe has been renewed following the results of financial system “stress tests,” which showed that most banks are well-capitalized to withstand a crisis.

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Europe ETFs

Disclosure: None