The US traded UPV provides leveraged exposure to European indices, it’s unhedged to swings in European currencies, while it’s traded in $US providing some mixed tracking to local investors. Currently, the ETF holds 24% in the UK, 16% France, 14% Germany, 14% Switzerland and 7% across other countries. Fees are 0.95% while gearing is 2x, and dividends are paid quarterly, with its current yield ~1.8%. Tracking is again “okay” with the European benchmark up 6.66% in the last 3 months while the UPV ETF has gained 10.2%. Overall, a solid ETF when active investors/traders want to move overweight towards Europe although we feel much of its outperformance is in the rear view mirror.
- We believe the UPV ETF will trade higher over the coming months with slowly decreasing momentum.
MM is bullish the UPV ETF over the coming months
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