Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: iShares MSCI EMU ETF, SPDR Euro STOXX 50 ETF, Vanguard FTSE Europe ETF, db X-trackers MSCI Germany Hedged Equity Fund and iShares MSCI United Kingdom ETF

CHICAGO, Aug. 27, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the iShares MSCI EMU ETF (AMEX:EZU-Free Report), SPDR Euro STOXX 50 ETF (AMEX:FEZ-Free Report), Vanguard FTSE Europe ETF (AMEX:VGK-Free Report), db X-trackers MSCI Germany Hedged Equity Fund (AMEX:DBGR-Free Report) and iShares MSCI United Kingdom ETF (AMEX:EWU-Free Report).

Zacks Investment Research, Inc., www.zacks.com

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Tuesday's Analyst Blog:

Eurozone & QE Hints – 3 ETFs to Buy

The European Central Bank (ECB) president Mario Draghi finally signaled that the much-awaited quantitative easing (QE) in the Euro zone could start if the deflationary environment worsens. On August 22, the ECB president noted that the bank was ready to take action with all accessible means if deflation worsens in the common currency bloc.

Investors considered this statement as the start of an asset buyback program or other sorts of stimulus programs. Sensing a potential easing, European stocks spiked to the highest point this month.  Several country and regional indexes added over 1%.

The investor cheer is justified as the expected cheap money from ECB should be a boon for the European stocks which, after seeing some rays of hope last year, have again started to languish this year on deflationary worries.

Effectiveness of QE

Previously, QE had proven extremely beneficial for the U.S. and Japanese markets. During the QE era, the key U.S. benchmark S&P 500 skyrocketed about 175%. The U.S. economy also got a boost, leading the Fed to prepare for an end to its QE program by this year.

Another example is the Japan model which basically resembles the Euro zone issues. Japan was weighed down by a 15-year deflationary streak and weak growth. To battle the situation, in April 2013, Bank of Japan instigated $1.4 trillion of quantitative easing to attain a 2% inflation rate within two years. Japan's key benchmark Nikkei index soared about 25% till date since the launch of the monetary stimulus program last April.

Why ECB Could Adopt QE

Quantitative easing is a form of monetary stimulus which is applicable when any other monetary support fails to provide the required momentum to economic indicators. In early June, the ECB announced a cut in its benchmark rate to 0.15% from 0.25%.

Also, the bank introduced a deposit rate of -0.1% which was previously held at zero percent, the first negative case for a major central bank (read: Negative Interest Rates Put These European ETFs in Focus).

The region's annual inflation slipped to a 5-year low in July. The number was 0.4% in July, down from 0.5% in June and 1.6% in July 2013. Negative annual inflation rates were noticed in Greece, Portugal, Spain and Slovakia.  Notably, ECB follows a directive to maintain inflation rates close to 2%.

On the GDP front, after posting 0.2% growth rate in Q1, the Euro zone GDP stalled in Q2 confirming that the region's economy is losing steam. Euro zone's powerhouse – the German economy – in fact weakened in Q2. The second largest economy in Euro zone, France, stalled and the third largest economy, Italy, has already slipped into a recession. Fresh banking woes were flashed in Portugal. Unemployment in July reached about 11.5% per a Bloomberg data, not far from the record high of 12% touched last year (read: Where Will Europe ETFs Go After Portugal Banking Woes?).

Though Draghi did not talk about QE in his August 22 dialogue (per Bloomberg) and is still relying on the policy measures adopted in June to perk up Euro area inflation and growth numbers, any further deterioration in the medium-term inflation outlook might force him to go for QE.

Market Impact

Most of the Europe equity ETFs have gained following Draghi's comment. The Stoxx 600 has registered the largest gain (more than 2%) since February last week to reflect investors' optimism about the introduction of asset buyback program (read: ETF Issuers Still Favor Euro Zone: Two European Funds Planned).

Two of the three largest Europe-based ETFs – iShares MSCI EMU ETF (AMEX:EZU-Free Report) and SPDR Euro STOXX 50 ETF (AMEX:FEZ-Free Report) – have advanced about 0.58%, 0.79% and 0.63%, respectively. For investors interested in playing this expected QE euphoria, we present three ETFs below, each of which also has a favorable Zacks ETF Rank as well:

Vanguard FTSE Europe ETF (AMEX:VGK-Free Report)

VGK is the largest and most popular ETF in the space with an AUM of $15.5 billion and an average trading volume of more than 3.5 million shares a day. Apart from being the largest, the fund is the cheapest bet in the space charging 12 basis points as fees.

VGK provides a diversified exposure to a large basket of 515 European companies. Sector-wise, Financials occupies the top spot, followed by Consumer Defensive and Health Care. Better-positioned nations including the UK, France, Germany and Switzerland have the biggest allocation in terms of countries.

The fund returned 12.5% in the past one year but was almost flat this year. VGK has a Zacks ETF Rank #2 (Buy) with a High risk outlook.

db X-trackers MSCI Germany Hedged Equity Fund (AMEX:DBGR-Free Report)  

Though Germany sagged in Q2, its economy is sturdier than its other Euro zone counterparts. So, it's better to focus on a German ETF without Euro exposure (as easing makes it a waning currency). Moreover, Germany is an export-oriented nation and poised to benefit from a weakening in the Euro (read: Top Ranked Germany Hedged ETF in Focus).

DBGR is a hedged German equity ETF providing exposure to 55 firms. The fund trades in a lighter volume and has amassed only $42 million in assets. The fund focuses on Materials, Consumer Discretionary and Financials sectors.

Expense ratio came in at 0.45%. DBGR has advanced about 11% in past one year while it has lost 3% to date. DBGR has a Zacks ETF Rank #1 (Strong Buy) with a Medium risk outlook.

iShares MSCI United Kingdom ETF (AMEX:EWU-Free Report)

EWU targets the large and mid-cap stocks of the UK. Notably, UK is yet another European market strong enough to navigate through the present doldrums, and unlike its counterparts on the euro, has seen some strength as of late. EWU invests about $4.2 billion in assets in 109 stocks.

The ETF is heavily focused on Financials, Energy and Consumer Staples. In terms of holdings, HSBC, Royal Dutch Shell and BP plc take the top three spots. The fund charges 51 basis point fees per year.

EWU has returned about 2.2% on a year-to-date basis and 14% in the last one-year period. BBH has a Zacks ETF Rank #1 with a Medium risk outlook.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on EZU - FREE

Get the full Report on FEZ - FREE

Get the full Report on VGK - FREE

Get the full Report on DBGR - FREE

Get the full Report on EWU - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
If you haven’t heard yet, CollabNet just put out some very big news for managing and gaining value from DevOps. We introduced CollabNet DevOps Lifecycle Manager (DLM) — a platform designed exclusively for providing a single pane of glass, dashboard, and traceability views across your DevOps toolchain and processes from planning to operations and that can be traced back to planning and development.
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...