Bringing you live news and features since 2006 

Source favours European equities

RELATED TOPICS​

A note from the Research team at ETF provider Source reveals that the firm favours European equities over those of the US and holds a maximum overweight to the Eurozone in the Source model portfolio, the Multi-Asset Portfolio.

 The firm writes that although the Research team at Source is neutral on equities in general and the prevailing market sentiment is negative towards Europe after recent volatility and poor performance so far in 2016, it believes the Eurozone economy is still accelerating and valuations look attractive while US equities have become too expensive. The Research team at Source remains neutral on the UK given Brexit-induced uncertainty.
 
Andras Vig, Director in the Source Research team, says: “Total return from European equities has been near zero over the year-to-date, as negative sentiment has offset decent dividend income and growth.”
 
“While there are pockets of risk in Europe – mostly in banks – we believe the prevailing negative sentiment is not justified. Although some of the uncertainty will remain, there is enough growth to support equities in the region. In particular, we have also softened our negative stance on European oil & gas and have upgraded it to neutral.”
 
“While we remain more positive on equities in Europe than the US, we still expect steady economic growth in both regions, although the UK might experience a mild recession. Our US allocations have become more defensive with an upgrade to healthcare and a downgrade to retail, in both cases to neutral.”
 
“We remain positive on banks and bearish on basic resources in both the US and Europe.”

Latest News

Raymond James Investment Management plans to launch an ETF product platform in 2025 to support strong client demand in alignment..
Aniket Ullal, Director of ETF Data and Research at CFRA Research, has written a note looking at ETFs with exposure..
Tradeweb reports the following data derived from trading activity on the Tradeweb Markets institutional European- and US-listed ETF platforms...
iShares writes that its assets under management have reached USD4 trillion. The firm says this comes off the back of..

Related Articles

Scott Kefer, VictoryEx Capital Holdings
Bailey McCann writes that active ETFs are capturing investor interest, according to the latest data from Morningstar, which finds that...
Chris Lo, Columbia Threadneedle
In a recent insight on India by Columbia Threadneedle Investments, the firm reports that the country’s economic reforms, which aim...
With an election on the horizon in the United States a group of ETFs is poised to capture investments on...
Robot worker
Qraft Technologies, based in South Korea, specialises in the use of AI in security selection and portfolio construction....
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by