ETF Spotlight: iShares MSCI Europe

Jul.15.11 | About: iShares MSCI (EUFN)

ETF Spotlight on iShares MSCI Europe Financial Sector Index Fund (NYSEArca: EUFN), part of an ongoing series.

Assets: $7.3 million. EUFN is a small ETF but an interesting barometer of the credit crisis in Europe that is shaking bank stocks.

Objective: The iShares MSCI Europe Financial Sector Index Fund tries to reflect the performance of the MSCI Europe Financials Index, which is a market capitalization weighted index that tracks the financials sector of developed market economies in Europe and includes securities of banks, diversified financial companies, insurance companies and real estate companies.

Holdings: Top holdings include: HSBC Holdings 10.96%, Banco Santander 6.07%, BNP Paribas 4.61%, UBS AG 4.13% and Allianz SE 3.95%.

What You Should Know:

  • EUFN has an expense ratio of 0.48%.
  • The fund has 106 holdings.
  • Sector allocations include: Banks 52.16%, Insurance 23.50%, Diversified Financials 19.40%, Real Estate 4.61%, S-T Securities 0.05% and other 0.28%.
  • Country allocations include: U.K. 29.99%, Switzerland 13.50%, France 12.68%, Spain 10.39%, Germany 10.38%, Italy 6.30%, Sweden 5.55%, Netherlands 4.01%, Belgium 1.50%, Austria 1.12%, Norway 0.91%, Finland 0.89%, Denmark 0.88%, Greece 0.84%, Portugal 0.24%, Cyprus 0.19%, Ireland 0.05% and U.S. 0.02%.

The Latest News:

  • The EU has conducted stress tests on 91 banks representing 65% of the financial sector “to assess the resilience of European banks to severe shocks and establish a common, conservative stress testing benchmark,” said the European Banking Authority, according to BusinessReport.
  • The tests were made to see if banks can withstand potential deterioration in Eurozone sovereign debt and other possible setbacks.
  • IMF Managing Director Christine Lagarde hinted at a more severe Greek bailout plan, which has put European finance ministers on edge over the possibility that the IMF may reduce the Greek rescue by as much as $163 billion if Greece does not adhere to austerity measures, reports James G. Neuger for Bloomberg.
  • The IMF and the European Central Bank recently stated that “all targets” in Ireland’s fiscal plans are being met, reports Henry McDonald for The Guardian.
  • Italy’s Senate has voted and approved an array of spending cuts, and the measures will go to the lower house of parliament where it is expected to pass for final approval, writes Mathieu Gorse for The Sydney Morning Herald.

iShares MSCI Europe Financial Sector Index Fund - (click chart to enlarge)


Max Chen contributed to this article.