Hi my friends,
This is one more post about financial assets in Europe for a while.
I’m trying to explain to you all my investments abroad.
As a Brazilian investor living currently in Brazil, I try to diversify my equities around the world, I want to secure my equity in some currencies too.
This ETF I bought at my brokerage Interactive Brokers, it’s ticker is CSSX5E-EUR, it’s sold in Euro (that you can buy in a forex page inside Interactive Broker’s home broker), it’s quite simple.
You can reach all about this ETF here: ETF CORE EURO STOXX 50
It invests mainly in France, Germany, Spain and Netherlands. I saw it’s companies for a while and I liked it too. I know that I have an exclusive Germany ETF, but I’m ok with this overlap, Germany market it’s a pretty fair price to me.
This ETF charges you only in 0,1%a.a, don’t pay any dividends, has a P/E = 17,43, P/B = 1,6, 50 big holdings, and no more than 5% in a single company.
Let’s see it’s accumulative returns in the past five years (since the beginning of its lifetime):
I think, talking about Europe that isn’t an emerging market, these results are very good. Remember that some of this companies operate outside of Europe.
Let’s see the ten biggest companies at this ETF:
Look closely to this brands, they’re good BRANDS, don’t you think?
AB InBev, Unilever, Bayer, SAP… at least this four I know more closely and I like it.
I really think that if you lives in Brazil or South America, Africa, Asia and wants to invest in Europe Stock Market this ETF it’s a good way, not the best, not the greatest, but a very fair ETF, with a good price, with a good cost-benefit ratio, very diversified, multimarket, not in just a single country, not a single currency, without take a lot of your time to study and worry about just with a single company. This is the essence of investing in a passive index. Do the simple action, buy a good ETF, don’t pay higher fees or a lot of taxes. Simplify your life.
I put my investments here to show you a way of investing, not the most profitable, not the most viable, only a way, to help you to build your own way.
As you see, I really don’t have a lot to say about an ETF, you have to verify it’s valuation, companies, tax treaty, countries, sector exposition (21% financials here, quite heavy in financials).
If you read this Frugal Simple Blog you will see that until now I invest abroad at.
UK ETF FTSE100
Germany ETF DAXEX
Europe ETF CSX5
Asia-Pacific Ex-Japan ETF CPXJ
Berkshire Hathaway (in the US)
The next purchases will be IWDA, CUSS, Sweden ETF. Month by month I buy a little bit of everything that I want. At 2018 I think I’ll complete all my assets that I want to buy, and after this, it’s just to buy that one wich is cheaper or that I have a low volume.
From 2016 to here (March 2017) I liked my results investing abroad (almost 11%). I know a lot of people says that Europe it’s broken, the US it’s a high valuation, Brazil it’s broken and whatsoever. Some people just see the empty half glass, never the shining cold water.
I wish you guys, the best.