EWL - EWL: Slower Growth Relative To The S&P 500 Index
2024-06-10 09:50:08 ET
Summary
- iShares MSCI Switzerland ETF has underperformed the S&P 500 index due to low exposure to growth sectors.
- EWL's sector allocation is heavily weighted towards defensive sectors, while growth sectors have minimal representation.
- Switzerland's manufacturing PMI has shown signs of improvement, but the direction of the services sector is uncertain.
Investment Thesis
iShares MSCI Switzerland ETF ( EWL ) owns a portfolio of about 50 stocks from Switzerland. The fund has underperformed the S&P 500 index in the past. This underperformance is primarily due to its low exposure to growth sectors. Although its valuation appears to be fair, earnings growth from stocks in its portfolio will likely be inferior to stocks in the S&P 500 index. Therefore, investors seeking higher returns than the S&P 500 index may want to seek funds that cover other countries instead....
EWL: Slower Growth Relative To The S&P 500 Index