Global / International Exchange Traded Funds
InvestorsFriend's one-stop Global
/ International ETF
reference Site provides:
- Selected Global / International Exchange Traded Funds (ETFs) and trading symbols
(this includes emerging market ETFs)
- Fundamental data for each selected
Global / International ETF (P/E ratio and dividend
- Links to updated P/E ratio, dividend and other info
each Global / International ETF
- Links to Yahoo Finance for
each Global / International ETF for an updated price and news items
- Two U.S. corporate Bond
Exchange Traded Funds are included
- The Management Expense Ratio (MER) of each selected
This article provides a list of selected Global
/ International Exchange Traded Funds (ETFs). It
also provides the available fundaments (P/E ratio and dividend yield, and price to book
value ratio) and the Management
Expense Ratio (MER) of each ETF. The intention is to provide a broad list of ETFs
covering major countries including emerging markets. This list is not intended to cover various
industry segments but rather to cover countries.
We provide the latest available P/E and dividend yields as of
July 7, 2012. And we also
provide links so that you can check the latest P/E, dividend yield, price to
book ratio and the ETF
prices. Therefore this Global / International Exchange Traded Fund (ETF) reference article can be used at any date,
not just near the date it was last updated.
Note that in many cases we
provide the P/E and other ratios from more than one source. Unfortunately they
tend to differ by source which does call into question, which figure is more representative.
The conservative approach is to assume the less attractive ratio is correct.
See also our analysis of Canadian
ETFs and Market segments.
Further Information on
interpreting our ETF table is provided below.
The Following ETFs Trade in the U.S.
Most of these
subject investors to currency risk between their country and
the currency in the country of the index. Canadian investors should
note that some of the distributions will be withheld as U.S. tax.
Be aware that
the net asset value of the underlying entities can differ from the price of
the ETF. This can be checked under the links to ishares.com in the first
We don't claim
to predict the future here. That is, we claim no particular knowledge of the economic outlook
in all these various countries or areas or the political or the currency risks.
Any comments here are
simply based on the P/E ratio, yield and price to book ratio. (If a country
ETF looks like a bargain we will say so)
Note that Yahoo seems to
consistently report lower trailing P/E ratios than ishares. We don't know
why that is. Both appear to use some form of adjusted earnings (omitting
unusual gains and losses). To be conservative it is best to assume the
higher (less attractive) P/E is more correct. In fact both may be too low.
sure to click the links below for updated P/Es and yield's before you buy.
Click the links for
| Trailing P/E
( appears to use normalized earnings)
| Dividend Yield %
(trailing 12 months)
|Price to Book ratio (from ishares.com)
Australia and Far East EFF
|3.46% on $49.96
at June 30, '12
$49.44 (MER 0.35%)
Canadians can buy
$16.00 on Toronto, hedged in Canadian dollars (MER
| Gives broad exposure to Europe, Australia
and the Far East. A heavy weighting to Europe.
Appears neutral in attractiveness
| U.S. S&P 500
S&P Operating 13.8
$135.95 (MER 0.09%)
Canadians can buy XSP
Toronto, hedged in Canadian dollars (MER 0.25%) May have
times bull (MER 0.95%)
2 times bear
1 times bear (MER 0.95%)
| 500 of the largest U.S. companies.
on the trailing GAAP P/E of 14.8 or the trailing operating P/E of 13.8,
this seems only neutral in attractiveness
seems too high for unknown reasons
leverage funds cannot be expected to perform at double the underlying index
except over a single day.
Double leverage funds lose money if the
market bumps up and down with no trend.
Jones Industrial Average
|| Dow 2.75%
$127.57 (MER 0.18%)
|| Appears to be moderately attractive
|| IOO $58.16 (MER 0.40%)
||Note that this is almost 50% weighted to the
Appears to be moderately attractive
||IEV $33.03 (MER 0.60%)
|| Appears to be only
attractiveness. (Although the P/E indicated by Yahoo is quite attractive)
| China 25 Index
||FXI $33.45 (MER 0.74%)
|| With only 25 companies it
is dominated by a few companies and therefore is more volatile.
quite attractive especially considering the high growth in China.
||EWJ $9.34 (MER 0.54%)
|| The price to book is attractive at 1.15.
The ishares P/E is unattractive but the P/E shown by Yahoo is attractive
| United Kingdom
|| EWU $16.36 (MER 0.54%)
| 4.67% ishares
|| EWA $21.89 (MER 0.51%)
|| Appears attractive
| Hong Kong
|| EWH $16.67 (MER 0.52%)
|| Appears attractive
|| EWZ $52.17 (MER 0.68%)
| BRIC Countries
ETF (China 40%, Brazil 30%, India 15%, Russia 14%)
|| BKF $35.75 (MER 0.75%)
|| Appears attractive, although the ishares
P/E is not particularly attractive at 15
|| EWI $10.56 (MER 0.54%)
|| Appears quite attractive
|| EWY $53.73 (MER 0.68%)
Year U.S. Treasury
||2.63% yield to maturity ishares
|| TLT $127.06
| No Credit risk. (Very) long term investors
could hold for the coupon although in that case you should directly buy a
treasury bond, not the fund.
Appears unattractive due to the low yield on these long-term bonds
This ETF can be used to speculate on U.S.
interest rates. It will fall in price if long-term interest rates rise and
rise in price if interest rates fall.
7-10-year Treasury by ProShares
|| PST $27.78
|Use this to speculate that U.S. long-term
Treasury bond interest rates will rise.
Canadian Investors may prefer this one
which trades on Toronto and is bought as a bet that U.S. long-term Treasury
rates will rise. The currency risk is hedged away.
Investment-Grade corporate Bond fund ETF
||Average Distribution Yield 4.07%
to maturity 3.42%
||LQD $118.52 (MER 0.15%)
The weighted average maturity is just over 12
years. This fund will fall in price if long-term interest rates rise. Also
it exposes investors to credit risk.
high yield corporate bond fund ETF
||Distribution Yield 7.02%
to maturity 6.63% (assumes no defaults)
||HYG $91.09 (MER 0.50%)
||Possibly attractive but consider interest rate and
The weighted average maturity is about 5
years. This fund will fall in price if mid-term interest rates rise. Also it
exposes investors to considerable credit risk. The full yield to maturity
will not likely be realized due to some of the bonds defaulting.
The above table is an excellent
reference investors interesting in gaining global and emerging market stock and bond exposure through ETFs. You can bookmark this page or
join our free newsletter list to be notified
Additional Emerging Market Countries
(had low P/E at 7 but is likely high risk)
For many more international
Exchange Traded Funds and countries see www.ishares.com
With this P/E ratio and yield information, investors can make a
better judgment as to the desirability
of various Country ETFs and we also provide the trading symbol under which each can be
purchased. (Or sold short for that matter).
While it can be very difficult to interpret whether a particular P/E ratio is
attractive or not, it is useful to be aware of these ratios. In most cases
the P/E ratios may not be the raw trailing P/Es but may be massaged to remove
extraordinary items. ishares indicates they exclude negatives and exclude extraordinary
items and and also cap indivual P/Es at 60. It's not clear what adjustments
Keep in mind that P/E ratios and
yields are based on the earnings and dividend information available at a point
in time. Ratios are always subject to
change as financial results change and as the ETF prices change.
If you click through to see the latest P/E and yields for these
global / international
ETFs note that many of them are not updated daily but are based on a previous
month end. In that case the reported ratios need to be adjusted to reflect the
latest ETF price. Click on the price of the ETF to go to Yahoo and see the
latest price, you can then click on historical prices on Yahoo to see the price
on the month-end that the P/E was last updated. Then, for example, if the
international ETF price is up 10% then the P/E would be up 10% and the yield
In buying or selling any of these
Global / International ETFs be cautious about the trading volume
and the bid/ask spread. Higher volume ETFs are preferred, all else being equal.
In buying any of these, be careful to double check the trading symbol with
other sources. I believe the symbols below are correct, but please double check.
A wrong symbol could lead to to the wrong investment.
Investors may wish to
consider the expected growth or contraction of the earnings that are driving the
P/E for a particular country. High growth can justify a high P/E and low or
negative growth leads to lower P/E ratios.
Note that the price charts of Global
/ International ETFs that trade in the U. S. are in effect
distorted by currency movements. The graph typically does not show just the movement of
the country index, but rather the country index in U.S. dollars.
Shawn Allen, CFA, CMA, MBA, P.Eng.
President, InvestorsFriend Inc.
July 7, 2012