What is the best bond ETF for European investors?
The best European treasury bond exchange-traded funds (ETFs) are FLIA, ISHG, and BWZ. The top holdings of these ETFs are German bunds, bonds issued by the government of Sweden, and bonds issued by the government of Japan, respectively.
| Investment focus ETF | Dividend yield in EUR (current) | Dividend yield in EUR (1 year) |
|---|---|---|
| Bonds World Corporate EUR iShares EUR High Yield Corporate Bond UCITS ETF EUR (Dist) | + 6.20% | + 6.33% |
| Bonds World Convertible Bonds USD Invesco AT1 Capital Bond UCITS ETF EUR Hedged Dist | + 6.16% | + 6.46% |
The iShares Core Euro Government Bond UCITS ETF (Dist) is the cheapest and largest ETF that tracks the Bloomberg Euro Aggregate Treasury index.
To invest in bonds, you can not go directly to a bond issuer. Instead, you need to open a brokerage account to buy bonds by signing up with an online broker. A broker is a trading platform where you can buy and sell all types of investments to build your portfolio, from stocks to funds as well as bonds.
- SPDR® Portfolio Europe ETF.
- Xtrackers MSCI Europe Hedged Equity ETF.
- iShares MSCI Europe Small-Cap ETF.
- JPMorgan BetaBuilders Europe ETF.
- Vanguard FTSE Europe ETF.
- iShares Core MSCI Europe ETF.
- WisdomTree Europe SmallCap Dividend ETF.
The EU MiFiD regulation prohibits brokerage firms to sell funds to European retail investors, which do not provide certain regulatory documents, such as a Key Information Document (KID). Notably, differences in US and EU regulation make it impossible for US-ETFs to provide such documents.
The European safe assets base includes government bonds from the highest-rated euro area countries, as well as bonds issued by European supranational institutions that are backed by the European Union or euro area countries.
| Symbol Symbol | ETF Name ETF Name | % In Top 10 % In Top 10 |
|---|---|---|
| EZU | iShares MSCI Eurozone ETF | 29.78% |
| DBEF | Xtrackers MSCI EAFE Hedged Equity ETF | 17.53% |
| IEUR | iShares Core MSCI Europe ETF | 20.45% |
| FEZ | SPDR EURO STOXX 50 ETF | 43.99% |
iShares Core S&P 500 Accumulating (IE00B5BMR087)
This fund is the largest S&P 500 ETF available in Europe!
| Symbol | Name | 5-Year Return |
|---|---|---|
| FNGO | MicroSectors FANG+ Index 2X Leveraged ETNs | 43.36% |
| TECL | Direxion Daily Technology Bull 3X Shares | 33.53% |
| SMH | VanEck Semiconductor ETF | 29.98% |
| ROM | ProShares Ultra Technology | 28.71% |
Can Americans invest in foreign bonds?
Yes, you can invest in foreign bonds, but they come with additional risks, such as geopolitical risks and currency risks due to fluctuating exchange rates. To invest in foreign bonds, you can buy them directly through a brokerage firm offering international bond trading or invest in international bond funds or ETFs.
The EU also issues EU-Bonds to finance loans for Ukraine. Under the Ukraine Facility, the EU will raise up to €33 billion in EU-Bonds between 2024 and 2027 to finance these loans. EU borrowing is executed using multiple instruments, including EU-Bonds, EU-Bills, and NextGenerationEU Green Bonds.
Investments in stocks or bonds issued by non-U.S. companies are subject to risks including country/regional risk, which is the chance that political upheaval, financial troubles, or natural disasters will adversely affect the value of securities issued by companies in foreign countries or regions; and currency risk, ...
Top Nasdaq 100 ETFs
In contrast, companies from the energy, finance and real estate sectors are not included in the Nasdaq 100 at all. In the USA, the popular QQQ ETF, which tracks the Nasdaq 100, has been available since 1999. It is managed by Invesco. The European counterpart of this ETF uses the ticker symbol eQQQ.
The European and UK UCITS Equivalent to VOO ETF or VFIAX Mutual Fund is Vanguard S&P 500 UCITS ETF, with accumulating share classes in GBP and EUR, and distributing share classes in GBP, EUR and CHF.
- Follows an index. ...
- Accumulating, not distributing. ...
- Diversified across many sectors. ...
- Low cost. ...
- Domiciled in Ireland or Luxembourg. ...
- Size matters. ...
- Replication. ...
- iShares Core MSCI Europe (IE00B4K48X80)
U.S. residents can NOT purchase non-U.S. ETFs. Individual fund eligibility is determined by the client's legal country of residence as well as where the non-U.S. ETF is registered to be sold. Non-U.S. ETFs can be traded with the help of a Schwab Global Investing specialist and are subject to foreign transaction fees.
For our European clients, Vanguard's business model is centred on providing a broad array of low cost investment funds and exchange traded funds ("ETFs") through our European domiciled UCITS products.
You can buy iShares ETFs through a stockbroker during daily trading hours. Please note that brokerage and other fees may apply. The London Stock Exchange (LSE) has a tool to help you locate a stockbroker which you can access here.
Yes, US bonds pay more interest than European bonds, but the European investor has to take a dollar risk, which can be beneficial or detrimental.
What is the most secure bond in the world?
Treasury Bills, Notes and Bonds
U.S. Treasury securities are considered to be about the safest investments on earth. That's because they are backed by the full faith and credit of the U.S. government. Government bonds offer fixed terms and fixed interest rates.
The distinguishing feature of European callable bonds is that they have only one possible call date, whereas American callable bonds, for example, may be called at any time. European callable bonds behave similarly to plain vanilla bonds after the call date, with a comparable coupon and time to maturity.
- Vanguard Total International Stock ETF (VXUS)
- iShares Core MSCI EAFE ETF (IEFA)
- iShares Core MSCI Emerging Markets ETF (IEMG)
- Franklin FTSE Japan ETF (FJPN)
- KraneShares CSI China Internet ETF (KWEB)
- Dimensional International Small Cap Value Portfolio (DISVX)
- Fidelity Zero International Index Fund (FZILX)
| ETF | Assets Under Management | Expense Ratio |
|---|---|---|
| Vanguard Information Technology ETF (VGT) | $70 billion | 0.10% |
| VanEck Semiconductor ETF (SMH) | $16.3 billion | 0.35% |
| Invesco S&P MidCap Momentum ETF (XMMO) | $1.6 billion | 0.34% |
| SPDR S&P Homebuilders ETF (XHB) | $1.8 billion | 0.35% |
But if you're an investor in Europe, you're now missing out on one of the biggest, most popular ones -- the SPY. The world's largest exchange-traded fund -- the $270 billion SPDR S&P 500 ETF Trust, which is listed on NYSE Arca under the ticker SPY -- is no longer available to buy for retail investors in the continent.
