We analyze 2 Italian ETFs that represent some of the best solutions on the market that replicate the performance of Italy’s stock index.
2023 promises to be a year of considerable interest for Italian and global investors, thanks to the surprising success of Italy in the ranking of the best performance among countries to date. In this article, we will explore exchange-traded funds (ETFs) that could offer investors access to this growing market.
Amundi FTSE MIB UCITS ETF Dist
The Amundi FTSE MIB UCITS ETF Dist is an exchange-traded fund (ETF) that replicates the performance of the FTSE MIB index, which includes the 40 largest Italian companies.
Key Indicators:
- Synthetic Expense Ratio (TER): The ETF’s TER ratio is 0.35% per annum, placing it in a cost-competitive position.
- Fund Size: the Amundi FTSE MIB UCITS ETF Dist ETF manages assets of approximately €323 million, indicative of a significant size that can contribute to the fund’s liquidity.
- ETF Currency: The ETF is denominated in Euros, without currency hedging, which can be an advantage or a disadvantage depending on the investor’s perspective.
Historical Performance:
The performance of this ETF has been quite varied in recent periods. Over the past year, it has seen a notable increase of +33.21%, while over the past five years, it has generated a solid +71.88%. It should be noted that in 2022 it suffered a decline of -9.28%, and this reflects the volatility typical of stock markets.
Dividend Distribution:
The Amundi FTSE MIB UCITS ETF Dist distributes dividends to investors annually. The dividend yield in recent years has varied between 1.10% and 4.90%, with an average of around 2.5%. This aspect can represent an incentive for investors seeking more regular income.
Risk and Volatility:
- The 1-year volatility was 16.37%, which indicates some variation in the fund’s returns in the short term. Over the long term, with 3- and 5-year volatility of 20.66% and 22.99%, the ETF has not demonstrated greater stability.
- Return to risk, measured by the ratio of return to volatility, is reasonably positive at 1, 3, and 5 years, suggesting that the fund offers adequate potential return for the risk taken.
- It should be noted that the maximum drawdown (maximum loss recorded by an investment) was significant in the short term, but less impactful in the long term, indicating lower long-term risk.
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iShares FTSE MIB UCITS ETF (Acc)
The iShares FTSE MIB UCITS ETF (Acc) is an exchange-traded fund (ETF) designed to replicate the performance of the FTSE MIB index, representing the 40 largest Italian companies. This ETF is managed by iShares, a division of BlackRock, a leading global investment management company. We will carefully examine the key details of this fund and its historical performance.
Key Indicators:
- Synthetic Expense Indicator (TER): the TER index of the ETF is equal to 0.33% per year, which places it among ETFs with relatively low expenses, ensuring good efficiency in terms of costs for investors.
- Fund Size: the iShares FTSE MIB UCITS ETF (Acc) manages assets of approximately €134 million, a significant size that could contribute to the fund’s stability.
Historical Performance:
Over the past year, the ETF has seen a notable increase of +33.47%, and over the previous five years, it has generated a solid +71.94%. However, it is important to note that it declined by -9.80% in 2022. Overall, the historical performance of this ETF is impressive, with a notable long-term return, but with some fluctuations to evaluate.
Risk and Volatility:
- 1-year volatility was 16.37%, indicating some degree of variation in short-term returns. However, volatility is no better in the 3-year and 5-year periods, at 19.65% and 22.47% respectively.
- Return for risk, measured as the ratio between return and volatility, appears positive overall at 1, 3, and 5 years, suggesting that the fund offers an adequate balance between return and risk.
- It should be noted that the maximum drawdown (maximum loss recorded) was moderate, particularly in the 3- and 5-year periods, indicating relative long-term stability.
| Disclaimer 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 2023-10-26 07:01:00. Original title: L’Italia vince la classifica del migliore rendimento Paese 2023. Gli ETF su cui puntare
