EUFN - ETF AI Analysis

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iShares MSCI Europe Financials ETF (EUFN)

Rating:59Neutral

Price Target:―

EUFN, the iShares MSCI Europe Financials ETF, has a solid but not top-tier rating, reflecting generally strong European bank and insurance holdings with some notable risks. Strong contributors like BNP Paribas, Zurich Insurance Group, BBVA, and Barclays support the fund through solid financial performance, attractive valuations, and in several cases positive technical trends and earnings sentiment. However, issues such as high leverage, bearish or overbought technical signals, and cash flow challenges in some holdings like Banco Santander, UniCredit, and ING Groep, along with the ETF’s concentration in the European financial sector, limit the overall rating and add sector-specific risk.

Positive Factors

Large Asset Base

The fund manages a sizable pool of assets, which can support liquidity and trading efficiency for investors.

Broad European Financial Exposure

Holdings spread across major European markets like the UK, Spain, Germany, Italy, France, and Switzerland provide regional diversification within the financial sector.

Several Strong Top Holdings

A number of the largest positions, including major European banks and financial groups, have shown generally strong year-to-date performance, helping support the ETF’s recent results.

Negative Factors

High Sector Concentration

With the vast majority of assets in financial companies, the fund is heavily exposed to downturns in the financial sector.

Mixed Performance Among Top Holdings

Some key holdings have shown weak or negative year-to-date performance, which can drag on the fund even when others are doing well.

Above-Average Expense Ratio

The fund’s expense ratio is relatively high for a passive ETF, which means more of the returns are eaten up by fees over time.

EUFN vs. SPDR S&P 500 ETF (SPY)

AUM4.33B

RegionEurope

Expense Ratio0.48%

Beta0.75

IssueriShares

Inception DateJan 20, 2010

Dividend Yield3.56%

Asset ClassEquity

Index TrackedMSCI Europe / Financials -SEC

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume2,970,011

30 Day Avg. Volume1,470,510

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

40.96

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering84

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

EUFN Summary

The iShares MSCI Europe Financials ETF (EUFN) is a fund that follows the MSCI Europe Financials Index, focusing on major European financial companies like Banco Santander and Allianz. It mainly holds banks and insurance firms across countries such as the UK, Spain, Germany, and France, giving investors a simple way to invest in Europe’s financial sector in one trade. Someone might consider EUFN for potential growth if European economies strengthen and for diversification beyond U.S. markets. However, this ETF is heavily tied to financial stocks, so its value can rise or fall sharply with changes in interest rates, bank profits, and the overall market.

How much will it cost me?The iShares MSCI Europe Financials ETF (EUFN) has an expense ratio of 0.48%, meaning you’ll pay $4.80 per year for every $1,000 invested. This is slightly higher than average for ETFs because it tracks a specific sector and requires more active management compared to broad-market index funds.

What would affect this ETF?The EUFN ETF, focused on Europe's financial sector, could benefit from economic recovery in developed European markets, increased lending activity, and growth in insurance and banking services. However, potential risks include regulatory changes in the financial sector, economic slowdowns in Europe, or rising interest rates that could impact borrowing and lending dynamics. Its concentrated exposure to financial institutions like Allianz and Banco Santander makes it sensitive to sector-specific trends and broader economic conditions in the region.

EUFN Top 10 Holdings

EUFN is essentially a bet on Europe’s big banks, with names like Santander, BNP Paribas, UniCredit, and ING doing much of the heavy lifting as their shares have been rising in recent months. BNP in particular has been a bright spot, helping to pull the fund higher. On the flip side, UBS and BBVA have been more mixed lately, occasionally putting sand in the gears. With nearly all exposure in developed European financials and a tilt toward large banks and insurers, this ETF is highly concentrated in one region and one sector.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
SAN	Banco Santander	5.53%	$243.61M	€157.30B	92.78%	73 Outperform
ALV	Allianz	5.02%	$221.07M	€141.06B	18.22%	67 Neutral
BBVA	Banco Bilbao Vizcaya Argentaria	3.95%	$173.96M	€113.89B	59.02%	76 Outperform
UBS	UBS Group AG	3.93%	$173.08M	$134.44B	27.19%	73 Outperform
UCG	UniCredit SpA	3.57%	$157.33M	€116.60B	72.72%	75 Outperform
BNP	BNP Paribas	3.28%	$144.55M	€104.11B	32.60%	77 Outperform
ZURN	Zurich Insurance Group	3.12%	$137.60M	CHF80.82B	17.76%	78 Outperform
ISP	Intesa Sanpaolo SpA	2.88%	$126.90M	€101.41B	29.89%	76 Outperform
INGA	ING GROEP	2.62%	$115.50M	€70.29B	52.08%	61 Neutral
BARC	Barclays	2.62%	$115.34M	£67.02B	55.96%	78 Outperform

EUFN Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

37.30

Positive

100DMA

35.47

Positive

200DMA

33.63

Positive

Market Momentum

MACD

0.06

Positive

RSI

52.79

Neutral

STOCH

52.25

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For EUFN, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 37.95, equal to the 50-day MA of 37.30, and equal to the 200-day MA of 33.63, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 52.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EUFN.

EUFN Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
EUFN	―	―	$4.33B	0.48%	59 Neutral
PBEU	―	―	$312.19M	0.13%	69 Neutral
WDEF	―	―	$70.10M	0.45%	61 Neutral
NVOH	―	―	$4.17M	0.19%	72 Outperform
SHEH	―	―	$3.51M	0.19%	75 Outperform
HSBH	―	―	$1.91M	0.19%	76 Outperform

Performance Comparison

EUFN

iShares MSCI Europe Financials ETF

37.92

12.28

47.89%

PBEU

Portfolio Building Block European Banks Index ETF

―

WDEF

WisdomTree Europe Defense Fund

―

NVOH

Novo Nordisk A/S (B Shares) ADRhedged

―

SHEH

Shell plc ADRhedged

―

HSBH

HSBC Holdings plc ADRhedged

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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