Terry Shaunessy
Vanguard FTSE Developed Europe All Cap Index ETF
VE-T
TOP PICK
Jan 24, 2020
55% of it is in the US, 35% is in Europe and Japan with the rest composed of emerging and Canadian. It has a good dividend without too much reliance on technology. Yield is 2.6%.
Europe is looking interesting on the back of this huge mass of QE that they are doing. It is something that he is looking at. However, it has run quite a bit, so he would wait and buy on market dips before getting into this.
He doesn’t typically buy a regional or Continental ETF, but thinks there will be some profit taking from the 5-6 year bull run in the US, and really thinks that the next marginal benefactor is going to be Europe.
BMO Europe High Dividend Covered Call Hedged (ZWE-T) or Vanguard FTSE Developed Europe Index (VE-T)? Both well-designed products but are very different in the kind of return profile that give. This one has no covered call overlay on this. This one will tend to outperform in a real bull market.
Contains Euro multinationals. Europe finally had a good quarter and money flows have started to flow into Europe. A cheap way to play Europe. As for Brexit, most of the companies within VE have nothing to do with Brexit.
For RRSP? Europe is primed for a good 2020; he's bullish Europe, contrary to other analysts. The Euro is more stable than many think. France is showing an uptick. Europe looks good for the coming decade in terms of expected returns. Growth profiles between Europe and the US are not that different.
(A Top Pick Jan 24/20, Up 2%) He likes Europe. Banks there have been under a lot of pressure. He expects North American banks to do well, but Euro banks are really cheap--and are essential to VE-T.
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