Over the last 5 years, these ETFs have recorded over 80% returns. Let’s analyze these 4 products in detail.
In recent years, investing in North America has attracted the attention of numerous investors around the world. The region’s robust economy, technological innovation, and diverse range of investment opportunities have made this part of the world an attractive place for those seeking attractive returns.
These 4 ETFs offer investors a simple and effective way to gain exposure to North American markets. In this article, we will explore 4 products that have performed exceptionally well over the past 5 years, thus providing investors with a clear idea of the opportunities this region can offer.
1. Amundi MSCI North America ESG Climate Net Zero Ambition
Amundi MSCI North America ESG Climate Net Zero Ambition CTB UCITS ETF Acc is an ETF that has demonstrated extraordinary performance over the last five years, with a return of 87.06%. This ETF tracks the MSCI North America ESG Broad CTB Select, index which in turn tracks stocks from developed countries in North America, namely Canada and the United States. The peculiarity of this fund is its focus on sustainability and European directives for climate protection. Investments are selected and weighted based on environmental, social, and governance (ESG) criteria, making this ETF an attractive choice for socially responsible investors.
With a fund size of approximately €320 million (351 million USD) and a total expense ratio (TER) of 0.15% per annum, the ETF offers an accessible investment solution. Using full physical replication, this fund is designed to closely reflect the performance of the MSCI North America benchmark index. Furthermore, since it is denominated in euros and has no currency hedging, investors do not have to worry about exchange rate risks. The one-year volatility is 15.46%, which indicates moderate variability in the underlying stock price. The fund was launched on 29 June 2016 and is accumulative, meaning that dividends are automatically reinvested to maximize capital growth potential.
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2. iShares MSCI North America UCITS ETF
The iShares MSCI North America UCITS ETF is another ETF that has demonstrated impressive performance over the past five years, with a return of 86.55%. This fund tracks the MSCI North America index, which also tracks stocks from developed countries in North America, Canada, and the United States. However, unlike the previous one, this ETF follows a quarterly distribution policy, meaning the dividends generated by the underlying shares are distributed to investors on a regular basis.
With a fund size of approximately €875 million (958 million USD) and a total expense ratio (TER) of 0.40% per annum, this ETF offers a slightly more expensive investment solution compared to the Amundi ETF but still competitive. This fund also uses full physical replication to track the MSCI North America index and is denominated in US dollars without currency hedging. One-year volatility is 15.50%, in line with other ETFs in the category. The fund was launched on 2 June 2006 and has a long track record.
3. BNP Paribas Easy MSCI North America ESG Filtered Min TE UCITS ETF
The BNP Paribas Easy MSCI North America ESG Filtered Min TE UCITS ETF has seen a return of 82.91% over the last five years. This ETF tracks the MSCI North America ESG Filtered Min TE index, which includes large- and mid-cap stocks from North America. The peculiarity of this fund lies in the fact that the investments are selected on the basis of ESG and climate change criteria, with the aim of minimizing the tracking error compared to the MSCI North America reference index.
With a fund size of approximately €259 million (284 million USD) and a TER of 0.15% per year, this ETF offers a good cost-performance ratio. Like the other ETFs presented, it uses full physical replication and is denominated in euros without currency hedging. One-year volatility is 14.44%, slightly lower than other funds in the category. The fund was launched on 26 February 2016 and is accumulative.
4. Xtrackers MSCI North America High Dividend Yield UCITS ETF 1C
The Xtrackers MSCI North America High Dividend Yield UCITS ETF 1C has delivered a return of 42.59% over the last five years. This ETF tracks the MSCI North America High Dividend Yield Index, which selects stocks of medium-large companies in North America to maximize dividend yields. The sustainability of dividend payments is an important criterion for stock selection.
With a fund size of €134 million (147 million USD) and a TER of 0.39% per annum, this ETF offers a dividend-focused investment solution. This fund also uses full physical replication and is denominated in US dollars without currency hedging. One-year volatility is 13.84%, the lowest among the ETFs featured, which may be attractive to investors seeking greater stability.
In conclusion, these 4 ETFs offer investors several options for gaining exposure to North American markets, each with its own characteristics and focus. The choice between them will depend on investors’ individual preferences, their investment objectives, and their risk appetite. It is important to note that past performance does not guarantee future results, so investors should conduct thorough research before making investment decisions.
The information and considerations contained in this article should not be used as the sole and principal basis on which to make investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them since he alone knows his risk appetite and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation for public savings.
Original article published on Money.it Italy 2023-11-24 16:12:17. Original title: Investire in Nord America? Gli ETF che hanno volato negli ultimi 5 anni