Opinions Mike Philbrick
Horizons EURO STOXX 50® Index ETFHXX.TOBUYApr 26, 2024
Mike PhilbrickStock price when the opinion was issued
As of Jun 04, 2026. Market Open.
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Canadian ETF based on 50 largest companies in Europe. MER is ~19 bps. Europe makes a lot of sense, as international markets are starting to perform well relative to the US. US is rife with policy uncertainty, plus valuations have moved higher. Top names include SAP, ASML, SI, and AZ. At a discount compared to US.
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Premium contentThe 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.
(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.
Terry Shaunessy(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.
Terry Shaunessy(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.
Terry Shaunessy
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.
Terry ShaunessyZeroing in on Germany and France. In September they expect money to be spread around in Germany.
Terry Shaunessy
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.