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The FEZ’s Sectoral Composition and Industry Performances

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Sectoral composition

The SPDR Euro Stoxx 50 ETF (FEZ) is one of the most popular US-traded ETFs, providing exposure to European equities. The fund is invested in a broad range of sectors including financial services, healthcare, industrials, consumer defensive, consumer cyclical, and energy at 26%, 12%, 11%, 11%, 9%, and 7% shares in its portfolio, respectively.

The fund tracks the Euro Stoxx 50 Index, a highly-followed Eurozone index made up of 50 of the largest and most liquid stocks in Europe and the world. Its trailing-six-month performance was ~-6.6%, and its trailing-one-month return was ~0.2%.

The top three performing industries in the last month were the personal care, electric, and software industries. Above is a graph that shows the positive performances of various industries in the portfolio.

Let’s analyze the key stocks that have contributed to the last month of the SPDR Euro Stoxx 50 ETF’s performance by determining their weighted returns, that is, by multiplying individual returns by their corresponding weights in the ETF.

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Key stock performances in various industries

The weighted return of the personal care industry in the ETF was ~0.52%. Unilever (UN) contributed the highest weighted return of ~0.29%, followed by L’Oréal (LRLCY), which has a weighted return of ~0.18%.

In the electric industry, Enel (ENLAY) contributed the highest weighted return of ~0.03%. In the software industry, SAP (SAP) contributed a weighted return of ~0.34%.

The trailing-one-month returns of SAP, Unilever, and L’Oréal were ~13%, ~11%, and ~10%, respectively. Above is a graph that shows the weighted returns and individual stock returns of the top three performers.

In the next part of the article, we’ll discuss how the SPDR Euro Stoxx 50 ETF has performed in the last month compared to the iShares MSCI All Country World Index (ACWI) and what factors drive the performances of certain key stocks in the SPDR Euro Stoxx 50 ETF.

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