Stockchase Opinions

Bruce Campbell (1) iShares MSCI Europe IMI Index ETF (CAD-Hedged) XEH-T PAST TOP PICK May 15, 2017

(A Top Pick March 15/16. Up 26%. Up 26%.) He sold this and bought individual names to replace it.

$24.750

Stock price when the opinion was issued

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TOP PICK

Europe. It is very low in fee and offers exposure to thousands of European companies, 25% UK. HXX-T would offer no UK weight if you wanted that. You can take profits in the Euro by moving into this. It is prudent to have SOME UK exposure no matter what.

TOP PICK

This is a play on the improving economic situation in Europe. Europe is trading at cheaper multiples at around 14X, versus the S&P at around 18X. It is a play on global growth and currency hedged. He likes the 20% weighting in financials. It currently pays a nice dividend at about 3.5%.

PAST TOP PICK

(A Top Pick, Jun 29/17, Up 4%) They launched this a number of years ago and he likes them because they are very cheap. It is a play on Europe. Currency hedging is baked into this product. They don’t just hold large cap stocks. It is much more diversified.

COMMENT

Good, but he wouldn't hedge the CAD. For instance, he likes the Euro, so buy an ETF exposed to the Euro.

PAST TOP PICK

(A Top Pick July 28/17 - Up 4%). Italy spoiled it. An area of the world that has underperformed for a long time. Earnings are doing well. This is not an if thesis but rather a when.

PAST TOP PICK

(A Top Pick July 28/17 - Up 5%) Still cheap. Earnings are doing fine. It is a matter of when rather than if for Europe to go higher.

BUY

XEH vs. XEU European valuations are much more attractive than US ones. Both are great for broad-based European exposure. Look at EUFN to supplement your core holding, a good value play. Very difficult to make an assessment of the Euro to the CAD. Both are around fair value now. He'd lean to the hedged version, XEH. The EM currencies provide the most attractive value right now so, if your risk tolerance allows, he'd look at those equities and unhedge that currency versus the CAD.

BUY
If you want to participate in recovery and growth in Europe, albeit with a lower yield.
BUY
Allan Tong’s Discover Picks Trading on the TSX and hedged to the Canadian dollar, XEH stock hit lows of $24.34 last October, but has since popped nearly $5. XEH is steady with a 1.01 beta, pays a 3.14% dividend yield and charges only a 0.28% MER. Its top holdings are Nestle, ASML, Roche, LVMH, Novartis, AstraZeneca and Unilever. Luxury goods are enjoying healthy sales despite inflation and healthcare remains a top defensive sector. XEH is the safest name on this list, one for income earners who wish to sleep at night. Read 3 Promising Oversold Stocks for our full analysis.
WEAK BUY

A good way to play Europe's big 50 stocks. But he's only lost money in Europe because of their politics and staunch unions.