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Terry Shaunessy Horizons EURO STOXX 50® Index ETF HXX-T PAST TOP PICK May 15, 2018

(Past Top Pick on June 1, 2017, Up 2%) This covers countries that carry the Euro (Germany, France, not UK). Tailwind: Germany is running big trade and fiscal surpluses, so Germany could pump prime rates onto the ECB.

$32.020

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TOP PICK

Zeroing in on Germany and France. In September they expect money to be spread around in Germany.

TOP PICK

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.

COMMENT

The 50 biggest stocks in Europe, so think about it like the S&P 500 in the US. If dealing in futures, the futures contracts on indexes are higher than the risk-free rate of interest is. This means futures are trading in a negative slope.

PAST TOP PICK

(A Top Pick June 1 / 2017 , Up 1%) Gain has gone out of it in last 6 weeks, but they’ll add to their position. Stocks influenced by Euro directly, so Germany and France are #1 and 2. Doesn’t think tax will be put on. Will bounce once trade war rhetoric blows over.

PAST TOP PICK

(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.

BUY
He likes Europe. It is a contrarian opportunity and charges the lowest MER in Canada. The dividend yield there is wonderful relative to bond yields. All you need in Europe is as stabilization in growth; they have gone through so much. It is tax efficient because it is a total return swap.
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TOP PICK

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.

BUY

Won't get distributions from dividends. Capital gains accrue when sell. Very tax efficient. Provides good exposure to Europe. Large cap names comprise most of fund.