which index ?

Which index will perform over the next year ?

IDVY – European based index composed of 30 stocks with leading dividend yields selected from companies in Eurozone countries. Slightly higher ongoing charges (0.40%) compared to the base European index (core Eurostoxx 50 at 0.16%). This has been a holding since 2006 and a core holding since 2012.

 

19 jun 2018 – equity indices

index long name p/e p/b TER dist Yld hold dist d(pe) d(yld)
idvy iShares Euro Dividend 11.89 1.28 0.40% 7.85 31 dist 1.12 3.83
csx5 iShares Core EURO STOXX 50 14.53 1.65 0.10% 52 acc -1.83
isf iShares Core FTSE 100 14.16 1.75 0.07% 5.16 101 dist -5.72 0.89
midd iShares FTSE 250 16.35 1.99 0.40% 3.77 244 dist 0.26 0.77
eue iShares EURO STOXX 50 14.53 1.65 0.10% 3.08 52 dist -1.83 0.12
ibzl iShares MSCI Brazil 14.28 1.56 0.74% 3.00 54 dist new new
itky iShares MSCI Turkey 7.23 1.11 0.74% 3.33 25 dist new new
fxc iShares China Large Cap 11.30 1.4 0.74% 2.66 52 dist new new
ndia iShares MSCI India 20.10 2.9 0.65% 78 acc new new

The FTSE 100 has a large down change in PE of the group.

Turkey is the most discounted @ 7.23.

 

 

 

12 Feb 2018

index p/e p/b TER dist Yld
idvy 10.77 1.28 0.40% 4.02
csx5 16.36 1.55 0.16%
isf 19.88 1.76 0.07% 4.27
midd 16.09 1.92 0.07% 3.00
eue 16.36 1.55 0.16% 2.96

 

early-2017

index p/e p/b TER dist Yld
idvy 11.56 1.34 0.40% 3.49
csx5 18.22 1.64 0.16% 3.07

 

mid-2017

index p/e p/b TER dist Yld
idvy 11.35 1.32 0.40% 4.01
csx5 18.17 1.64 0.16%

 

 

 

Distribute or accumulate

There is no material risk difference between distributing index and accumulating index since the value one way of the other will revert to the investor either through the increased in value of the index or the dividend. There may be tax implications for example, income tax on dividends (for the distributions) compared to capital gains tax on sales (for the accumulations).

EUE = The Fund seeks to track the performance of an index composed of 50 of the largest companies in the Eurozone. (distributing)

CSX5 = The Fund seeks to track the performance of an index composed of 50 of the largest companies in the Eurozone. (accumulating)

For the purpose of returns the distributors are preferred over the accumulators due to the fact that the yield is explicitly shown. The yield is a real return (ie. actual dividends paid) from the dividends over the course of the past 12 months for the index.

 

Rationalle

The difference being the entities. The investor gets a lower p/e ratio which is one measure of value and a lower p/b which is a second measure.

 

Relative value

To date, there is no index that offers a discount to book. All trade at a premium which is common of most equity. The price to earning is a key measure although one should note that this is trailing data (usually the last 12 months). Performance is therefore looked at in relative terms to other indices and asset classes.

 

Elements

ISINNameCountryWeight (%)Sector
FI0009007132FORTUMFinland6.27033Utilities
IT0000062072ASSICURAZIONI GENERALIItaly5.16405Financials
IT0003153415SNAMItaly4.57889Energy
PTEDP0AM0009ENERGIAS DE PORT SAPortugal4.38487Utilities
FR0000125585CASINO GUICHARD PERRACHON SAFrance4.0242Consumer Staples
FR0000120628AXA SAFrance3.84332Financials
DE0008404005ALLIANZGermany3.77094Financials
FR0000131104BNP PARIBAS SAFrance3.62114Financials
FI0009000202KESKOFinland3.61393Consumer Staples
DE0008430026MUENCHENER RUECKVERSICHERUNGS-GESEGermany3.55153Financials
DE0007100000DAIMLER AGGermany3.54991Consumer Discretionary
FR0000120271TOTAL SAFrance3.5404Energy
FR0000130809SOCIETE GENERALE SAFrance3.52407Financials
NL0000852580ROYAL BOSKALIS NVNetherlands3.50744Industrials
FR0010411983SCOR SEFrance3.50378Financials
BE0003810273PROXIMUS NVBelgium3.40684Telecommunications
IT0003506190ATLANTIAItaly3.39965Industrials
ES0113900J37BANCO SANTANDER SASpain3.33791Financials
DE0005552004DEUTSCHE POST AGGermany3.08Industrials
FR0000124711UNIBAIL-RODAMCO SE REITFrance2.90296Real Estate
FR0000133308ORANGE SAFrance2.73891Telecommunications
FI0009007835METSOFinland2.43246Industrials
FR0000125486VINCI SAFrance2.41765Industrials
DE000BASF111BASF NGermany2.40014Materials
DE0008402215HANNOVER RUECKVERSICHERUNGGermany2.38792Financials
NL0000009355UNILEVER DRC NVNetherlands2.37463Consumer Staples
FI0009003727WARTSILAFinland2.23956Industrials
NL0011794037KONINKLIJKE AHOLD DELHAIZE NVNetherlands1.92273Consumer Staples
DE0007236101SIEMENS N AGGermany1.8918Industrials
NL0000395903WOLTERS KLUWER NVNetherlands1.84593Industrials
--EUR CASHEuropean Union0.71383Cash and/or Derivatives
--CASH COLLATERAL EUR BZFUTEuropean Union0.05506Cash and/or Derivatives
--GBP CASHUnited Kingdom0.00323Cash and/or Derivatives
DE000C0NSEN6EURO STOXX 50 MAR 18European Union0Cash and/or Derivatives

 

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