A Total stock market ETF for european market

SPC100

Registered User
Messages
1,055
Hi,

I would prefer a total stock market ETF, rather than just eurostoxx 50, or another narrow european index, which does not hold too many companies.

Does anyone have any recommendations for a european ETF, which holds the majority of companies in Europe?

Thanks,

Sean.
 
Hi Marc, Thanks for your reply.

If it includes UK and/or Switzerland it is not a deal breaker for me.

Ideally I'm looking for a massive (highly liquid) ETF, which holds all European companies (down to small and micro cap), and closely tracks it's index/has low costs.
 
Interesting time to be loading up on European stocks.

The market has priced in the risks therefore buying European equities has a higher expected return. This is a good strategy if you have the nerves to ride it out.

What I do in our portfolios is use the I shares Euro Stoxx 600 to provide Core European exposure. This is a German domiciled fund (look under developed equity/regional). It is also a distributing fund so you pay exit tax at 30% rather than 33%.

That gives you most of the market cap for equity in Europe for a TER of 0.21%pa

To get small cap exposure you would need to add another fund. I expect there are European smaller company ETFs out there but I use the Dimensional European Smaller Companies fund which has 1468 securities and a TER of 0.69.

That gives me a portfolio of over 2000 European Stocks and controls costs well.

If I want to add a value tilt I use the DFA European Value fund which is 156 stocks TER 0.57%pa.

Job done.
 
Thanks a lot for that Marc, 600 is more than I have managed to find so far, and at 1.2billion euro it is not very small!

I agree, the fall in Europe make's it a good time to rebalance, or to to over-rebalance a small bit, if one believes in reversion to the mean.

I'm 100 percent equity for my sins. I'm viewing NPV of state pension/savings potential etc., as my effective cash/bond holdings.

I don't know the full tax implications for an ETF domiciled in Germany. I have a memory that I read that the dividend withholding tax is a bit higher for Irish investors if it is domiciled in Germany, so that might bite the return a bit...
 
Back
Top