iShares MSCI Europe ex-UK UCITS ETF
Why is this fund on our radar?
Exchange traded funds (ETFs) have become a popular starting point for many investors because they offer a simple, low-cost way to access broad markets. An ETF is essentially a basket of investments, usually shares or bonds, that aims to track the performance of a specific index, such as the FTSE All-Share in the UK or the S&P 500 in the US.
Although we believe high-quality active managers can add value over the long term, we also recognise that many investors want simple and transparent building blocks in their portfolios. With this in mind, we reviewed the large universe of ETFs with the aim of selecting options that provide clean, representative exposure to their markets at a low ongoing cost.
Europe is more than just a single continent. It’s politically, economically and culturally diverse. From Norway and Sweden to France and Germany, each area has its own opportunities and challenges, which we believe can offer investors potential benefits.
In our view, the iShares MSCI Europe ex-UK ETF provides investors a way to access these major markets, making it a useful building block for those wanting to diversify beyond the UK. We selected this ETF because of its scale, liquidity and the strength of the iShares brand, which is backed by BlackRock’s extensive resources in passive investing.
Portfolio
The fund uses a physical replication approach, meaning it invests in every company in its index, and has a good track record of closely matching the performance of said index. Costs of 0.40% are low for the breadth of exposure offered, particularly given there are relatively few ETFs that cover such a wide slice of the European market. The ETF is also widely available on major platforms, so for investors seeking access to Europe without UK overlap, this fund offers a clear and cost-effective route.
