No. of Recommendations: 11
Though it's more of a board for individual stocks, I thought I'd pass on a fund I thought interesting. Inception only last year.
Equal weight MSCI European stocks, about 400 names. Not just euro area, so it includes UK, Sweden, Switzerland. Fees are 0.2%, about the same as RSP, the equal weight S&P 500 fund.
Current dividend yield is about 2.3%, which is *after* all withholding taxes. Perhaps surprisingly, that is how it is normally reported. I think the gross is around 2.7%. For folks in most countries, the gap (the tax withheld) is largely available as a tax credit on your home country tax return.
There are two versions, MEWD which distributes the dividends, and MEEQ which automatically reinvests them (the amount after withholding taxes but before your personal income taxes, so better than doing it yourself).
Both are listed in Europe in euros, I believe the reinvesting one is also listed in the UK in sterling and in the US in dollars.
"Invesco MSCI Europe Equal Weight UCITS ETF", and "Invesco MSCI Europe Equal Weight UCITS ETF Distributing"
Sometimes you might just want a one-click purchase that requires no further thought.
Why equal weight? Slightly higher long run returns than cap weight because you're never overweight the overvalued, and far far lower company-specific risk. Higher returns and lower risk, what's not to like?
I have a pricey LLM grinding away calculating the median earnings yield - the average is useless because of its sensitivity to a few outliers.
Jim