EUFN: Offering Pure-Play Coverage To European Financials
Summarize this article with:
The Alpha Sieve4.73K FollowersFollow5ShareSavePlay(13min)CommentsSummaryThe iShares MSCI Europe Financials ETF offers pure-play exposure to developed European financial stocks, emphasizing banks and giant caps.EUFN trades at 25-30% valuation discounts to US financials, boasts a 3.58% yield, and could provide useful portfolio diversification given a relatively low beta with the S&P 500.Risks include heavy bank exposure amid weak European GDP growth, declining net interest income, and above-average tracking error versus its index.Investors who are prepared to broaden their regional horizons may also consider IXG, which has managed to trounce EUFN by almost 3x since the latter's debut in the market. Gary Yeowell/DigitalVision via Getty Images Introduction to the iShares MSCI Europe Financials ETF The iShares MSCI Europe Financials ETF (EUFN), which has been in existence since January 2010, is a US-listed ETF that offers broad, mainstream, non-leveraged pure-play coverage of financialThis article was written byThe Alpha Sieve4.73K FollowersFollowInvestment research, primarily oriented towards uncelebrated/under-covered stocks and ETFs, across North America, Latin America, Europe and Asia. Seeks to combine both fundamental and technical disciplines while making an investment/trading proposition.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You