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EWU - ETF AI Analysis

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EWU

iShares MSCI United Kingdom ETF (EWU)

Rating:72Outperform
Price Target:
EWU, the iShares MSCI United Kingdom ETF, has a solid overall rating driven by strong, diversified blue-chip holdings like AstraZeneca, HSBC, and Rio Tinto, which benefit from healthy financial performance, strategic growth initiatives, and generally supportive valuations. Some holdings such as BAE Systems and Unilever face weaker technical momentum or higher valuations, which slightly weigh on the fund’s rating. The main risk factor is its concentration in the UK market, meaning performance is closely tied to the health of the UK economy and its major sectors.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year to date, indicating positive recent momentum.
Leading UK Blue-Chip Holdings
Several of the largest positions, including major banks, energy companies, and defense firms, have delivered strong year-to-date performance that supports the fund’s returns.
Broad Sector Diversification
Holdings spread across financials, health care, consumer defensive, industrials, energy, and other sectors help reduce the impact of weakness in any single industry.
Negative Factors
High Country Concentration
With the vast majority of assets in UK companies, the fund is heavily exposed to the UK economy and local political and currency risks.
Mixed Performance Among Top Holdings
Some large positions, such as major consumer goods and tobacco companies, have shown weak or negative year-to-date performance, which can drag on overall returns.
Moderate Expense Ratio
The fund’s expense ratio is not especially low for a broad country ETF, meaning fees take a noticeable bite out of long-term returns compared with cheaper alternatives.

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

EWU Summary

The iShares MSCI United Kingdom ETF (EWU) is a fund that aims to track the MSCI United Kingdom Index, giving you broad exposure to the UK stock market in a single investment. It holds many well-known British companies across different sectors, including HSBC Holdings and Shell, as well as health care, consumer, and industrial firms. Someone might invest in EWU to diversify outside their home country and gain long-term growth potential from the overall UK economy. A key risk is that the value can rise or fall with the UK stock market and its financial and energy sectors.
How much will it cost me?The iShares MSCI United Kingdom ETF (EWU) has an expense ratio of 0.5%, meaning you’ll pay $5 per year for every $1,000 invested. This is slightly higher than average for ETFs because it tracks a specific international index, which can involve more costs compared to passively managed U.S. market ETFs.
What would affect this ETF?The iShares MSCI United Kingdom ETF (EWU) could benefit from positive trends in the UK economy, such as growth in the financial and healthcare sectors, which are heavily represented in its holdings. However, it may face challenges from rising interest rates, which could impact financial stocks, or economic uncertainty tied to Brexit-related trade negotiations. Additionally, fluctuations in energy prices could affect major holdings like Shell and BP.

EWU Top 10 Holdings

EWU’s story is being written by a handful of heavyweight UK names. HSBC and AstraZeneca are doing much of the heavy lifting, with both stocks rising steadily and giving the fund a solid backbone in financials and healthcare. Energy is another key chapter: BP and Shell have been climbing over the past few months, though Shell has wobbled more recently. On the flip side, consumer giant Unilever is losing steam and weighing on returns. Overall, this is a very UK-centric play, anchored in banks, pharma, and energy rather than high-flying tech.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
HSBC Holdings9.70%$330.03M£226.99B58.35%
80
Outperform
AstraZeneca9.15%$311.51M$292.69B32.74%
80
Outperform
Shell (UK)7.79%$265.08M£184.86B32.32%
73
Outperform
Rolls-Royce Holdings4.05%$137.82M£94.80B52.14%
71
Outperform
Unilever3.91%$133.20M£93.54B
72
Outperform
British American Tobacco3.91%$133.12M£93.11B34.43%
71
Outperform
BP p.l.c.3.79%$128.86M£88.37B58.12%
71
Outperform
Rio Tinto3.55%$120.97M£126.33B62.36%
82
Outperform
GlaxoSmithKline3.48%$118.28M£80.64B43.08%
77
Outperform
National Grid2.72%$92.73M£64.41B20.67%
76
Outperform

EWU Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price
Price Trends
50DMA
46.65
Negative
100DMA
45.75
Positive
200DMA
43.35
Positive
Market Momentum
MACD
0.10
Positive
RSI
42.40
Neutral
STOCH
8.40
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For EWU, the sentiment is Neutral. The current price of undefined is equal to the 20-day moving average (MA) of 47.17, equal to the 50-day MA of 46.65, and equal to the 200-day MA of 43.35, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 42.40 is Neutral, neither overbought nor oversold. The STOCH value of 8.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EWU.

EWU Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$3.43B0.50%
72
Outperform
$9.43B0.50%
63
Neutral
$8.98B0.09%
65
Neutral
$856.64M0.09%
72
Outperform
$42.72M0.59%
67
Neutral
$40.06M0.80%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EWU
iShares MSCI United Kingdom ETF
45.99
9.36
25.55%
EZU
iShares MSCI Eurozone ETF
BBEU
JPMorgan BetaBuilders Europe ETF
FLGB
Franklin FTSE United Kingdom ETF
EWUS
iShares MSCI United Kingdom Small Cap ETF
FKU
First Trust United Kingdom AlphaDEX Fund
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.
DisclaimerThis 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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