Stockchase Opinions

Jon Vialoux iShares MSCI EAFE E.T.F. EFA-N TOP PICK Feb 13, 2015

This holds Japan, UK, Germany, European countries. If Japan and Germany are going to be accommodating their monetary policies, it looks ideal to be investing in European equities right now, particularly since we do have the favourable seasonal trend ahead of us. Markets around the globe tend to benefit from the positive 6 months’ seasonal trend from October to May. Everything looks set up for European markets to now outperform the S&P 500.

$63.820

Stock price when the opinion was issued

E.T.F.'s
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TOP PICK

Europe, Asia and Far East. XEF-T is a Canadian version. Biggest weighting is Japan, which is one of the cheapest countries out there. Compared to North American indexes, you get a higher dividend, has a valuation discount as measured by forward price earnings as well as price to book multiple.

PAST TOP PICK

(A Top Pick Feb 13/15. Up 5.6%.) The period of seasonal strength for stocks benefits all markets globally and this has been the beneficiary of that.

PAST TOP PICK

(A Top Pick June 24/14. Down 1.05%.) The actual investment itself was up 14.5%, but because of the rising US$, it has taken away from the returns, so he moved into Wisdomtree International Hedged Equity Fund (HEDJ-N) giving exposure to Europe.

COMMENT

A very large and liquid ETF that gives you exposure to the European union.

COMMENT
EFA vs. VEA? Very similar; they cover Europe, Australia and the Far East. But EFA excludes Canada and South Korea. VEA charges only 7 basis points, and EFA around 30. Both are good ETFs. He's focusing on America and not thrilled about Europe.