Best Europe ETFs for Q1 2024

At the very beginning of this article, we will first explain what is ETF. It’s short for exchange-traded funds, and in Europe, it’s constituted from the biggest companies on the continent. The interest for them is growing every day, especially in Europe, since the investors are looking for more transparent options for their next action, so they are buying European exchange-traded funds, to increase their exposure on the market. The complete number of European ETFs that trade in the USA is 38, and the best one between them in November this year was iShares MSCI Denmark ETF.

So let’s see which are the others, together with this one.

iShares MCSI Denmark ETF

It’s issued by iShares, and the 1-Year trailing total return is 37.9%. They are focused in Denmark, and it’s a cap that holds around 30 stocks (according to November’s data). In the last three months, they accomplished a pretty high average daily volume. It’s constituted of shares in a few healthcare companies and industries. The top three companies under this cap are pharmaceutical one, a turbine maker, and energy holding.

iShares MSCI Sweden ETF

It’s the same issuer, but these are based in Sweden. This cap targets the Swedish companies, and it’s made of 36 bigger and smaller stocks. Among the companies that are part of it are LM Ericsson, Atlas Copco, and Volvo. You can also read more to compare the African funds in 2024, to get a better image of what is really happening, and how the market will change the next year.

iShares MSCI Netherlands ETF

As you can see, these are based in the Netherlands, covering a few large and small companies that are great options for the home and foreign investors. The companies that offer their shares are different, and most of them are focused on circuits and semiconductors, food, personal care, technology, and Internet provides.

These are the most interesting ETFs for the investors, as a part of the bigger iShares core, but sure there are a lot more caps in Europe that are attractive enough to catch their attention. But, surely there are other ETFs that are worth mentioning, as Franklin FTSE Europe ETF, SPDR® Portfolio Europe ETF, Xtrackers MSCI Europe Hedged Equity ETF, iShares MSCI Europe Small-Cap, JPMorgan BetaBuilders Europe, and so on.

Also, there are some terms that people who are generally interested in stocks, should know and understand, including:

What is the expense ratio?

That’s the percentage of the assets that the fund manager can take for fees and other expenses that may appear during the process of trading and investing. Low expenses mean more profitable investments. This ratio’s value is based on a math formula, so at the end of the year, the total expense can be calculated.

What is the tracking error?

This so-called error is based on indications and expectations through the last six months for some asset, and the real outcome, compared to the benchmark. It’s used so the investors can see if they perform well, or nothing is changing on the market. The formula follows the investor’s performance by tracking the daily value returns, to calculate the six-month index.

What is the bid/ask ratio?

It’s the difference between the bid and ask values between different ETFs. The formula is based on dividing the difference between these values, and their mid-price too. This is useful to calculate the fees that may not be transparently accessible. If this ratio is big, the liquidity is lower, and vice versa. It’s measured for the last 30 days, for more precise results.

There are also more terms that every beginner must learn before investing. In Europe, there are local regulators who are monitoring the growth, and they work together with the International Organization of Securities Commissions, so they can regulate the legislations as needed through time. The market should be transparent, and there are commissions who are trying to take care of every possible aspect.

Today, they all have a lot of options and choices, compared to the past, when they were very limited. The reason was that most of the ETFs were based in the USA, but in the 90s, it started to spread all around the world, showing exceptional results in the European based market.

It was a great step to strengthen these markets and to create better strategies, that will result in growth, profit, and many other factors that affect the return. Also, today, cryptocurrencies may also make an important role there, for more transparent actions and transactions.

This market also requires innovations and something bigger and new, so it can work smoothly. Sometimes, investors come with unique strategies, which is great for them to make their portfolio more valuable, gain more experience, and to get know the market even better. All of these factors are helping them to increase the possible profit, no matter where in the world are they. European ETFs are currently very attractive, knowing that there are a lot of valuable companies who are offering their shares on the market for different reasons. It’s expected that it will grow even more rapidly. On the other side are European investors too, who now have equal chances to invest in foreign countries and be a part of other markets, no matter if that is American, Asian, or African.

Since this is a hot topic right now, it doesn’t mean it’s for everyone. Not every person is able to handle the possible changes that may occur anytime. At the same time, it means it’s risky, and if you want to take a part in it, you must be ready for the risks that come together with the investing. But, the idea that you may own for a moment even the smallest part of some big company, will give you strength and motivation to be better at what are you doing. No matter if you are based in Europe or somewhere else, you have a chance to learn more and see how the whole process is going through time. And when it comes to 2024, the expectations are that the iShares cap will still be “the boss” on the European market.