In this article, we will take a look at the 5 best European ETFs to buy. If you want to read our discussion on the European ETF industry, you can check out the 12 Best European ETFs to Buy.
5. iShares MSCI Switzerland ETF (NYSEARCA:EWL)
5-Year Price Performance: 28.1%
Total Net Assets as of September 21, 2023: $1.23 billion
Expense Ratio: 0.50%
Number of Holdings: 44
iShares MSCI Switzerland ETF (NYSEARCA:EWL) offers exposure to Switzerland’s economy through sectors like healthcare, financials, and consumer staples. Nestlé S.A. (NESN.SW), Novartis AG (NYSE:NVS), and Roche Holding AG (ROG.SW) are the top three holdings of the ETF. These stocks collectively represent 43.8% of the ETF’s total assets.
Here’s what Madison Funds said about Novartis AG (NYSE:NVS) in its Q3 2022 investor letter:
“We sold our position in Novartis. We like the company’s track record of innovation, and its diversified portfolio of drugs. However, we’ve become increasingly concerned about the outlook for some of its recently launched therapeutics, as well as some generic competition in a few of its mature drugs. If pressed, we still like the odds that Novartis will do well, but the outlook is a little cloudier than it’s been in a while. As noted above, we’ve been big fans of its Alcon unit for many years, and now that Alcon is independent, we decided to concentrate our investment there.”
4. Franklin FTSE Switzerland ETF (NYSEARCA:FLSW)
5-Year Price Performance: 32.6%
Total Net Assets as of September 21, 2023: $47.61 million
Expense Ratio: 0.09%
Number of Holdings: 50
Franklin FTSE Switzerland ETF (NYSEARCA:FLSW) provides low-cost exposure to a broad basket of Swiss equities. The ETF’s top holdings and sector exposures are similar to those of the iShares MSCI Switzerland ETF (NYSEARCA:EWL). The ETF stands out for its low management fee, although it may have lower liquidity. The ETF provides 32.6% and 22.1% exposure to the healthcare and consumer staples sectors, respectively.
3. ProShares UltraShort Euro (NYSEARCA:EUO)
5-Year Price Performance: 35.2%
Total Net Assets as of September 21, 2023: $46.09 million
Expense Ratio: 0.98%
Number of Holdings: 2
The ProShares UltraShort Euro (NYSEARCA: EUO) offers double (2x) inverse leveraged exposure, making it suitable for traders who anticipate a decline in the euro. However, it comes with high daily volatility and major compounding risks over long periods. Experts recommend this ETF for active traders. The ETF is designed to deliver twice the opposite daily performance of the US dollar price compared to the euro. In simpler terms, if the euro falls by 1% against the dollar on a particular day, the EUO is expected to increase by approximately 2%.
2. iShares MSCI Denmark ETF (CBOE:EDEN)
5-Year Price Performance: 56.5%
Total Net Assets as of September 21, 2023: $245.39 million
Expense Ratio: 0.53%
Number of Holdings: 48
iShares MSCI Denmark ETF (CBOE:EDEN) intends to replicate the investment results of the MSCI Denmark IMI 25/50 Index, composed of Danish small, mid and large-cap equities. The ETF has 41.1% and 25.9% exposure to the healthcare and the industrials sector, respectively. Denmark is home to Novo Nordisk A/S (NYSE:NVO), which has received the distinction of being the most valuable European company in terms of market capitalization following the launch of its weight-loss drug, Wegovy, in early September 2023.
1. iShares MSCI Turkey ETF (NASDAQ:TUR)
5-Year Price Performance: 67.3%
Total Net Assets as of September 21, 2023: $220.48 million
Expense Ratio: 0.58%
Number of Holdings: 74
iShares MSCI Turkey ETF (NASDAQ:TUR) tracks the performance of the MSCI Turkey IMI 25/50 Index, composed of Turkish small, medium, and large-cap stocks. The ETF pays out dividends semi-annually and has a distribution yield of 3.36%. The ETF is managed by the iShares division of BlackRock and provides complete exposure to one of the few emerging economies in Europe. Türkiye Petrol Rafinerileri A.S. (TUPRS.IS), Türk Hava Yollari Anonim Ortakligi (THYAO.IS), and BIM Birlesik Magazalar A.S. (BIMAS.IS) are the top three holdings of the ETF, representing 19.5% of the total assets.
Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out the 10 Worst Performing Currencies in Asia and 15 Best Affordable Stocks To Buy Under $5.
