The World Cup has reached its final four. Spain, France, England, and Argentina will contest some exciting matches this week in advance of the final. Those nations, with the slight adjustment for England, all also can be invested in via single nation ETFs. With more and more investors seeking diversification, single-nation ETFs can help as discrete, individual building blocks.
Key Takeaways:
- The Men’s World Cup is approaching its conclusion. How do the Final Four nations’ single-nation ETFs stack up?
- Single-nation funds can help portfolios diversify, leaning on the ETF wrapper’s flexibility.
- The iShares MSCI Spain ETF (EWP) produced the strongest returns from the group, up 37.6% over the last year.
While France may appear the out and out favorite at the World Cup right now, how does it stand up as an ETF? The iShares MSCI France ETF (EWQ ) cannot claim the same status. The strategy, which tracks the MSCI France Index, has returned just 2.5% YTD per ETF Database Data. EWQ charges 50 basis points (bps) to invest in firms trading on the French stock exchange. Its performance has lagged the broader ETF Database Europe Equities category average.
The Spain ETF, meanwhile, can claim stronger results. The iShares MSCI Spain ETF (EWP ) tracks the MSCI Spain 25-50 Index, focusing on large- and midcap firms. EWP has returned 12% YTD with that approach. Over the last 12 months, it has performed even better, returning 37.6%. Both its YTD and one-year returns have outperformed the ETF Database Europe Equities category average. Like EWQ, it charges a fee of 50 basis points.
U.K. and Argentina Funds Perform Well Among Single Nation ETFs
The iShares MSCI United Kingdom ETF (EWU ) includes more than just England, but it’s the closest to an England-only ETF. The fund charges a 50-bps fee to track the MSCI United Kingdom index. It also only invests in firms listed on the London stock exchange.
EWU has outperformed the France ETF EWQ, but not EWP. It has produced decent performance YTD, returning 7.5% in that time, but better over the last 12 months. Its one-year period performance of 19.6% has outperformed the Europe equities category average in that period.
Finally, bucking the iShares trend, comes the Global X MSCI Argentina ETF (ARGT ). The Argentine economy is not only the only non-European market present in the top four (and the only non-European team at the World Cup), but also the most unique amid its libertarian experiments.
See more: International ETF TOUS Signals Diversification Buy
ARGT charges a 59-bps fee to track the MSCI All Argentina 25/50 index. The fund has disappointed YTD, with just a 4.4% return. It has done better over the last one year, with a 16.7% return. Those returns trailed the fund’s ETF Database Latin America equities category average in both periods.
Together, those funds represent intriguing options to diversify away from the U.S. While Spain may not win on Sunday, it has won the day among single-nation ETFs. For those looking at single-nation ETF offerings, it could be one to watch.
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