2024-07-04 10:47:03 ET
Summary
- EWN has outperformed European peers and global markets this year, but we would urge some caution going forward.
- Netherlands GDP growth in Q1 was adversely affected by the manufacturing sector and its FY forecasts are expected to lag the Euro area.
- Housing affordability continues to be a source of concern, with house price growth poised to stay elevated through much of this year.
- Heavy exposure to ASML may not be ideal given the high valuations and lack of tangible tech policy support by the new government.
- EWN is not cheap from a valuation angle, and the risk-reward on the charts is not ideal.
Introduction
The iShares MSCI Netherlands ETF ( EWN ), a sub $300m sized ETF that focuses on 52 stocks from the Netherlands, has generated decent enough alpha this year. In a year where its European peers have only witnessed single-digit returns, and global markets as a whole, have generated 12% returns, EWN has steadily outperformed these options by 2.3x and 1.4x respectively....
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For further details see:
EWN: A Few Reasons Not To Get Carried Away