Question on IEU
Please advise if you still think the IEU ETF will follow the ASX 200? David
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Answer
Hi David,
The iShares Europe ETF (IEU) has a high correlation with the Australian market as seen below. We remain bullish local and European stocks, although in an increasingly choppy manner.
Europe has experienced a considerably worse Covid experience and this has lead to under performance of European stocks, opening up a good chance for some performance reversion v the ASX, a similar theme we’re backing via our recent purchase of Virgin UK (VUK).
*Note – the chart below has noted code IEM on it. That is incorrect labeling only. The orange line is the IEU.
