Seeking Alpha
Bonds, dividend investing, ETF investing
Profile| Send Message|
( followers)  

The DJ Euro Stoxx ETF (NYSEARCA:FEZ) from State Street Global Advisors seeks to mimic the Dow Jones Euro Stoxx Index. This index contains 50 Eurozone companies that are market leaders in their sector. Eurozone area includes the most of the countries in Western Europe except the UK. This ETF provides exposure to some of the largest companies of Europe.

Some observations of this ETF:

  1. Germany and France account for about 64% of the portfolio.
  2. Only about 32% of the portfolio is in financials. Some of the country specific ETFs have higher concentration of financials.
  3. Dividend yield is 4.25%
  4. Expense ratio is 0.32%
  5. The fund has a total asset base of just $279 M. For the advantage this ETF offers, one would think that the fund may have grown to at least a billion dollars.
  6. One can gain exposure to some large companies which trade in the OTC markets. These include E.ON AG (German utility), Bayer AG (German Chemical giant), GDF Suez (French Utility ), RWE AG (German Utility), Air Liqude (French Chemicals), Groupo Danone (French Food company), etc.
  7. In current market conditions, it may be safer to go with an ETF for large cap stocks than individual stocks - unless one can accumulate many stocks in a variety of sectors.

Just as an fyi: The iShares DJ Euro STOXX 50 ETF with ticker EUE trading in the London Stock Exchange has an asset base of 4.7 Billion EUR.

Links:
Fez-holdings

FEZ-Factsheet

Disclosure: I do not own FEZ.

Source: 7 Observations on the DJ Euro Stoxx ETF