Global ETFs Stock Report
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 yield and price to book ratio)
- Links to updated P/E ratio, dividend and other info for each Global / International ETF
- Links to Yahoo Finance for each Global / International ETF for an updated price and news items
- Four bond Exchange Traded Funds are included
- The Management Expense Ratio (MER) of each selected International ETF.
This article provides a list of selected Global / International Exchange Traded Funds (ETFs). It also provides the available fundamentals (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 relatively 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 the date indicated at the end of this report. 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. See also our analysis of Canadian ETFs and Market segments. We have also provided a basic low-fee ETF portfolio using Canadian and global ETFs.
Further Information on interpreting our ETF table is provided below.
| The Following global 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 (usually 15% except in RRSP accounts) may be withheld for U.S. income 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 the index provider, usually ishares.com in the first column below. 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) The P/E ratios often appear to use some form of adjusted earnings (omitting unusual gains and losses). Be sure to click the links below for updated P/Es and yields before you buy. Note that even the updated P/E ratios that you click to will often be based on the ETF price at the end of the previous month. Alos many are based on earnings from the previous fiscal year as opposed the the latest four quarters. That could be mis-leading if the ETF price or earnings has meanwhile changed significantly. | |||||
| Global ETF Click the links for ishares.com info. | Trailing P/E (adjusted earnings) | Dividend Yield % (trailing 12 months) | Price to Book ratio (from ishares.com | ETF | Comment |
| U.S. S&P 500 ETF | 22.4 | 1.9 | 3.2 | IVV $265.31 (MER 0.04%) Canadians can buy XSP $29.74 on Toronto, hedged in Canadian dollars (MER 0.11%)
You can also get double leverage or “bear” versison. See warning! 2 times bull (MER 0.89%) SSO $103.36 2 times bear (MER 0.90%) SDS $39.93 1 times bear (MER 0.89%) SH $30.12 |
500 of the largest U.S. companies. This seems unattractive. However, the way it measures P/E looks too high in this case.
WARNING: Double leverage funds lose money if the market bumps up and down with no trend. |
| Dow Jones Industrial Average ETF | 20.1 | 2.1 | 3.2 | DIA $242.81 (MER 0.17%) | Appears neutral to somewhat unattractive |
| ishares Europe, Australia and Far East EFF | 13.6 | 3.3% | 1.6 | EFA $61.78 (MER 0.33%) or XIN $24.35 on Toronto, hedged in Canadian dollars (MER 0.50%) | Gives broad exposure to Europe, Australia and the Far East. Appears attractive but the P/E is calculated on latest fiscal earnings |
| Vangard all cap developed world ex USA and Canada | 12.7 | 2.6% | 1.5 | VIU Toronto $26.15(MER 0.23) Also VI Toronto $26.56 which is hedged in Canadian dollars | Appears attractive |
| ishares Global 100 ETF | 18.8 | 2.3% | 2.3 | IOO $44.47 (MER 0.40%) | Note that this is 60% weighted to the United States. Appears to be neutral in attractiveness |
| Europe 350 ETF | 14.1 | 3.3 | 1.7 | IEV $40.94 (MER 0.60% | Appears to be moderately attractive. |
| China 25 Index ETF (Tracks the largest Chinese companies on the Hong Kong Exchange) | 10.6 | 3.8% | 1.3 | FXI $40.42 (MER 0.74%) | With only 25 companies it is dominated by a few companies and therefore is more volatile. Appears attractive especially considering the high growth in China but China is also considered risky. |
| Japan ETF | 12.5 | 1.6% | 1.3 | EWJ $54.08 (MER 0.48%) | Appears attractive |
| United Kingdom ETF | 13.3 | 4.7% | 1.6
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EWU $31.28 (MER 0.48%) | Appears attractive |
| Australia ETF | 16.8 | 4.5% | 1.9 | EWA $22.64 (MER 0.48%) | Appears attractive given the dividend |
| Hong Kong ETF | 9.4 | 5.1% | 1.2 | EWH $22.62 (MER 0.48%) | Appears attractive. Dominated by a few larger companies |
| Brazil ETF | 16.9 | 2.3% | 1.9 | EWZ $38.70 (MER 0.63%) | Appears neutral in attractiveness. |
| BRIC Countries ETF (China 60%, Brazil 17%, India 15% Russia 8% | 12.5 | 2.0% | 1.6 | BKF $38.75 (MER 0.72%) | Appears attractive |
| Italy ETF | 10.3 | 3.9% | 1.1 | EWI $24.72 (MER 0.48%) | Appears attractive |
| South Korea ETF | 8.5 | 3.7% | 1.0 | EWY $58.61 (MER 0.64%) | Appears attractive |
| 20+ Year U.S. Treasury 26.0 years average bond 17.1 years effective duration | 3.29% yield to maturity | TLT $115.14 (MER 0.15%) | 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. | ||
| Ultra-SHORT bet 7-10-year Treasury by ProShares | PST $23.17 (MER 0.95%) | Can use this to speculate that U.S. long-term Treasury bond interest rates will rise. | |||
| U.S. Investment-Grade corporate Bond fund ETF Average maturity 12.5 years. | Average Yield to maturity 4.52%
(With a distribution yield lower at 3.75%, it appears that these bonds trade under par on average) |
LQD $111.64 (MER 0.15%) | Looks moderately attractive. The weighted average maturity is over 12 years. This fund may fall in price if long-term interest rates rise. Also it exposes investors to credit risk. | ||
| U.S. high yield corporate bond fund ETF
Average maturity 5.0 years |
Yield to maturity 6.99% (assumes no defaults)
Trailing yield 4.9% – the average bond here trades below par |
HYG $82.71 (MER 0.49%) | Possibly attractive but consider interest rate and credit risk The weighted average maturity is about 5.0 years. This fund could fall in price somewhat 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 for 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 of updates. Additional Emerging Market Countries India INDA Malaysia EWM Chile ECH Indonesia EIDO Mexico EWW Peru EPU Philippines EPHE Taiwan EWT Thailand THD Turkey TUR Russia ERUS For many more international Exchange Traded Funds and countries see www.ishares.com and www.proshares.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 are apparently not the raw trailing P/Es but may be massaged to remove extraordinary items. 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 some 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 down 10%.
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.
END
Shawn Allen, CFA, CMA, MBA, P.Eng.
President InvestorsFriend Inc.
November 25, 2018