Opinions
Terry Shaunessy
Horizons EURO STOXX 50® Index ETF
HXX-T
TOP PICK
Jul 05, 2017
Stock price when the opinion was issued
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(A Top Pick July 5/17, Up 4%) Banks are big players here, but they’ve gone nowhere because of interest rates where pretty flat. The place to be in the future. Likes it for a taxable account because it doesn’t pay the dividend, it’s one of those total return ETF, the stock price will reflect the accumulated dividend. A key holdings for them on the international side.
The simplest way for Canadian investors to participate is through an ETF. To be blunt, these instruments aren't popular with Canadian investors. The daily volumes of the HXX average 2,250 shares, which actually rank higher than fellow Euro ETFs. As a total return ETF, HXX doesn't pay a yield (no worries about taxes), but it charges a rock-bottom MER of 0.17%. Most importantly, HXX rose 12.9% in Q1 and 23.84% in 2023. HXX is most exposed to France with 43% of its holdings, followed by Germany at 25.6%. Consumer goods and financials make up 40% of HXX. Its top holdings are AMSL, LMVH (Louis Vuitton), Total Energies, Sap and Sanofi.
When you are into an EAFE (See comments under Top Picks for ZEA-T) he likes continental Europe. This one excludes Japan and the UK. It tends to focus on euro focused countries. Thinks France and Germany politically will be in the driver’s seat in the next 6 months.