VGK - Vanguard Europe ETF

[investmd]

Broad European ETF with low MER (0.10%). World wide everything including Europe is up from 2009 lows. However European ETF is still 30% BELOW 2007/2008 highs - has not even recovered yet post recession!

 

In comparison not only has S&P500 ETF, SPY, recovered handsomely from 2009, it is up approx 65% from 2007 highs. Europe still has good companies/bright people and a modern legal climate. Whilst one waits for Europe to bounce back, the ETF pays out a dividend yield of approx 3%.

[no_free_lunch]

I own some of this.  However, I dont think it's actually that cheap.  If you look at the shiller PE's of european counries, france is at 20, germany is at 20, switzerland is 25, most aren't cheap.  Cheaper than the US for sure but not bargain priced either.  There are a few specific countries, UK for instance, which are cheap based on ratio's but generally they have issues.

 

I think that with the destruction of european banks a lot of equity just got wiped out.  That equity can't come back as the shareholders got completely diluted so I am not sure if it is fair to compare the index levels from a decade ago to today.

 

However, all that pessimism aside, it does seem a reasonable diversification against the US and yes the dividend is nice.

[John Hjorth]

investmd,

 

If you have a link to a fact sheet for this ETF, that you would share, it would be much appreciated. I have been messing around on the .dk Vanguard site, and I'm not sure I'm looking at the right one.

[lessthaniv]

https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/productoverview?fundId=0963

 

 

[John Hjorth]

Thank you, lessthaniv!