Euro Stoxx 50 ETF (SYGEU) by DALL·E
As trade wars rage on and off and the war in Ukraine continues Europe is stepping up. President Trump is turning his back on the Ukraine war and is threatening to exit Nato altogether.
Europe has largely been ambling along for the last many decades but the recent announcements by Germany of a €500billion special fund dedicated to enhancing their infrastructure and increased defence spending could change all of that as the final spend could hit €1trillion.
Europe has also announced their “ReArm Europe Plan” could see up to €800billion being spent on defence (above what Germany announced).
Maybe, finally Europe is on the go.
Further after a decade plus of excellent returns from the US as Europe lagged the value in Europe is much more apparent then it is in US stocks, especially big tech.
The Sygnia Itrix Euro Stoxx 50 ETF (JSE code: SYGEU) ETF thus has great long-term potential as the only regional local ETF for Europe.
The SYGWD, the SYGUS and the CSP500 all offer very similar exposure to companies listed predominantly in North America. While many of these companies are operational around the world, the ETFs are denominated in US dollar. Investors expecting growth in Asia have the option of investing in the Sygnia Itrix Japan ETF as well as the Satrix Emerging Market ETF, which is mostly invested in Asia. The SYGUK ETF offers investors exposure to the pound.
This ETF invests in nine European economies, with the French and German economies respectively taking up 36.3% and 28.1% of this ETF. The Netherlands, Spain and Italy also have some representation, although much less than that of Europe’s economic powerhouses.
50 European companies, many of them household names around the world, are represented in this ETF.
Financials, industrials, consumer discretionary and information technology dominates this ETF. The shift in the past few years has seen consumer discretionary slipping while financials and industrials and gained and they make almost 80% of the industries this ETF invests into.
The ETF also gives exposure to the Euro.
SYGEU Top10 | December 2024
| ETF name | Sygnia Itrix Euro Stoxx 50 |
| JSE code | SYGEU |
| ETF issuer | Sygnia |
| Issue date | 10 October 2005 |
| Total investment cost (TIC)* | 0.92% |
| ETF benchmark | EURO STOXX 50 Index |
| Tax-free savings account | Investment allowed |
| Market cap | R2.97bn |
| Performance | 1 year +8.5%
3 years +76.5% 5 years +125.6% 10 years +128.3% |
| Dividends | 1.89% |
| What we like | An opportunity to invest in European economies and gain some exposure the euro. |
Simon Brown
