Stockchase Opinions

John Hood iShares MSCI United Kingdom ETF EWU-N TOP PICK Jan 02, 2020

His reason for buying is that he thinks the UK will do a lot better outside the EU. Yield is 4.13%.
$34.150

Stock price when the opinion was issued

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COMMENT
International Investing: iShares (US) dominates the international markets in terms of ETFs. You want something that is Canadian dollar hedged if possible.
DON'T BUY

A Great Britain ETF? He is not wild about Britain right now, only because the uncertainty is very difficult. Remember you are taking exposure to the British pound indirectly, which bounces around like a ping-pong ball.

BUY ON WEAKNESS
It's a buying opportunity. All UK large cap stocks are trading at a discount even though most companies have profits coming from over sees and are profiting from the weaker point. You get a 4.8% dividend yield while you wait. Brexit will get resolved and you will get a big pop.
DON'T BUY

Large Caps UK. This is a big issue with BREXIT in play. If you look at UKX-T you can see nothing has been gained from 2017 to 2019. He thinks it is very close to a time to invest in the British Pound. He prefers EWUS-T for smaller cap stocks because they have much higher upside. He is starting to nibble.

BUY
A past pick. EWU carries the 100 biggest UK stocks; 70% of their revenues come outside the UK, because they're multinationals. The UK left the EU and the world didn't end. Sterling is quite weak, so you can still buy this. The UK will leave the EU by year's end with or without a deal. Pays a 4.5% yield at 14x earnings.
PAST TOP PICK
(A Top Pick Dec 05/19, Down 12%) He is always wrong when he recommends something in Europe. He got out.
COMMENT

EWU is large cap stocks that would track large UK equities, like banks. EWS is for small caps. HEWU is to play it without the British Pound exposure.

BUY
An ETF that holds UK stocks iShares offers country ETFs. The MER is reasonable and its holdings are diversified.