DJXXF - European Equities Seem To Offer Relative Value But That's A Trap

Scanning the global markets for value always makes me stop in Europe. Using the S&P 500 ([[SPY]]) as our reference, we get a P/E ratio of 20.84, a P/BV of 3.27, and a distribution yield of 1.56%.

Table 1 - Portfolio characteristics of the S&P 500 ETF

(Source: iShares)

Now, looking at the STOXX Europe 600 ([[DJXXF]]), we get a P/E ratio of 15.85, a P/BV of 1.77, and a distribution yield of 3%.

Table 2 - Portfolio characteristics of STOXX Europe 600 ETF

(Source: iShares)

Comparing both indexes, we can see that there

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