Equity: Spain - Total Market

HEWP Top Performer Intra-day
Price $22.73
Today’s Change +0.26%(1.16)
3:58pm 03/28/2017
DBSP Bottom Performer Intra-day
Price $23.87
Today’s Change 0.00%(0.00)
4:00pm 03/28/2017
  • Overview
  • Efficiency
  • Tradability
  • Fit

ETF.com Insight

For 18 years, iShares' EWP was the only ETF option for targeted exposure to the Spanish equity market. That changed in June 2014 with the launch of QESP, from State Street. QESP deeplyMost investors will be better off holding a total-market Europe fund undercut EWP's fee, and it tracks a collection of three factor indexes in contrast to EWP's highly-concentrated, plain-vanilla index.
That said, QESP hasn't attracted much capital and sees truly anemic liquidity. Retail investors who aren't completely sold on the fund's "smart beta" strategy are advised to avoid it until the trading situation improves. EWP has a massive asset base and trades millions of dollars' worth of shares every day, at tight spreads.
While EWP dominates this segment and earns our Analyst Pick ribbon, it isn't without problems. The fund is expensive and doesn't track all that well. Further, it provides extremely top-heavy exposure to just a handful of Spanish companies. Most investors will be better off holding a low-cost, total-market Europe fund, rather than trying to slice and dice along country lines.
There are also now two currency-hedged options for getting exposure to Spanish equity. Both HEWP and DBSP track variants of EWP's index, so they compete directly. DBSP is the cheaper of the two, but HEWP gets its equity exposure by holding EWP, which could aid liquidity. (Insight updated 03/28/17)

All Funds (4)

EWP $889.61 M 889614930 Extremely stable

A 96
E
91
91
T
89
89
F
96
96

QESP $2.28 M 2284000 High closure risk

B 92
E
90
90
T
59
59
F
92
92

DBSP $2.39 M 2387223.872 follows the same index as HEWP

D 74
E
72
72
T
58
58
F
74
74

HEWP $56.14 M 56141000 Ignore bad tracking

N/A 0
E
0
-1
T
0
-1
F
0
-1

ETF.com Grade as 03/23/17

Equity: Spain - Total Market

1 Year Total Return NAV
Performance  [as of 03/27/17] 1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years
Benchmark: MSCI Spain Investable Markets11.80%15.15%14.34%18.89%-3.79%5.00%--
A 96.306436EWP889614930EWPiShares MSCI Spain Capped ETF12.55%15.78%15.39%18.10%-4.66%4.93%-1.22%
B 92.194095QESP2284000QESPSPDR MSCI Spain StrategicFactors ETF11.88%15.21%14.03%15.86%------
D 74.233604DBSP2387223.872DBSPDeutsche X-Trackers MSCI Spain Hedged Equity ETF9.62%5.00%-10.43%25.17%------
N/A 0HEWP56141000HEWPiShares Currency Hedged MSCI Spain ETF9.93%11.88%12.42%23.56%------
All returns over 1 year are annualized. All returns are total returns unless otherwise stated.

ETF.com Efficiency Insight

EWP is a part of iShares' MSCI single-country suite of ETFs which launched in 1996, collectively taking third-place for the oldest ETF currently trading. With nearly two decades ofEWP isn't going anywhere trading history and over $1B in assets it's a safe bet that the fund isn't going anywhere. That said, EWP isn't particularly Efficient. It charges a steep fee (Total Europe funds can be had for as little as a quarter the cost), and has historically lagged its index by even more than that.
HEWP offers currency-hedged exposure to EWP's index for just a few bps more. In fact, the fund literally holds EWP for its underlying equity exposure. We expect poor tracking statistics from HEWP, but this is just an illusory issue caused by a timing mismatch (EWP continues trading when Spanish markets are closed). The fund launched in July 2015, and already has a significant asset base.
Competitor QESP, from State Street, deeply undercuts EWP's fee. The fund only launched in June 2014, so we don't have enough performance history to evaluate how well it tracks its index, but EWP certainly sets a low bar. Unfortunately, QESP hasn't caught on and we see high closure risk.
Finally, Deutsche's DBSP, launched in August 2015, undercuts EWP's fee by a few bps. DBSP offers currency-hedged exposure to a variant of EWP's index, but unlike HEWP, it holds the underlying stocks directly and so should have more accurate tracking statistics. DBSP must gather assets if it's to succeed. (Insight updated 03/28/17)

All Funds (4)

91
90.808755
90
90.085139
72
71.719478
N/A
0

ETF.com Grade as 03/23/17

Equity: Spain - Total Market

Tracking Difference (12 Month)

Ticker Expense Ratio Median Max. Upside Max. Downside Max LT/ST Cap Gains Rate Rule Legal Structure Fund Closure Risk Efficiency
DBSP Deutsche X-Trackers MSCI Spain Hedged Equity ETF 0.45% -- -- -- 20.00% / 39.60% High 71.719478
EWP iShares MSCI Spain Capped ETF 0.48% -0.38% -0.27% -0.45% 20.00% / 39.60% Low 90.808755
HEWP iShares Currency Hedged MSCI Spain ETF 0.51% -- -- -- 20.00% / 39.60% Low 0
QESP SPDR MSCI Spain StrategicFactors ETF 0.30% -0.18% -0.12% -0.21% 20.00% / 39.60% High 90.085139

ETF.com Tradability Insight

There's no question that EWP dominates the segment in liquidity. The fund's massive asset base supports multiple-creation-unit trades every day, at razor thin spreads. InvestorsEWP dominates and traders of all stripes and sizes should have no problem getting in and out fairly.
The other three funds in the segment barely trade at all. Quoted spreads look reasonable, but thin order books for these funds means that a poorly-timed market order could prove expensive. Use limit orders and proceed with extreme caution. Institutional investors trading whole blocks will have a much easier time of it.
Note that HEWP scores poorly in block liquidity because it uses EWP as its underlying. However, because EWP itself gets a perfect score in block liquidity, block trades in HEWP are likely to be cheap and easy when working with a market maker. (Insight updated 03/28/17)

All Funds (4)

89
89.453219
59
58.762247
58
57.573719
N/A
0

ETF.com Grade as 03/23/17

Equity: Spain - Total Market

Ticker Median Daily Volume ($) Average Spread Creation Unit/Day Market Hours Overlap Underlying Volume/Unit % Creation Cost Per Unit (%) Impediment to Creations Score - Tradability
HEWP iShares Currency Hedged MSCI Spain ETF $196.87 K 0.09% 0.19 100.00% 3.81% 0.01% None 0
QESP SPDR MSCI Spain StrategicFactors ETF $33.64 K 0.08% 0.01 31.00% 0.22% 0.04% None 58.762247
DBSP Deutsche X-Trackers MSCI Spain Hedged Equity ETF $0 0.14% 0 31.00% 0.08% 0.04% None 57.573719
EWP iShares MSCI Spain Capped ETF $26.61 M 0.04% 13.09 31.00% 0.15% 0.07% None 89.453219
Spread History
Premium/Discount History

ETF.com/ Block Liquidity

EWP
5
4
3
2
1
DBSP
5
4
3
2
1
QESP
5
4
3
2
1
HEWP
5
4
3
2
1

This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

Segment leader EWP takes a plain-vanilla approach to the Spanish equity market. Its index is a variant of our neutral benchmark, so the fund scores highly in Fit. That means it'sEWP is extremely top-heavy top-heavy; Banco Santander alone makes up roughly 20% of the portfolio, and the top 10 holdings account for over 70%. Unsurprisingly, financial firms dominate at roughly 50% of the portfolio. To keep management costs under control, EWP completely cuts out the benchmark's tiny allocation to small caps.
QESP makes equal allocations to three MSCI factor indexes: value, low volatility, and quality. Unsurprisingly, the handful of large-caps that dominate EWP's portfolio see moderate cuts to their allocations in QESP. We also see moderate sector tilts. Still, the fund's performance hasn't been radically different from that of our neutral benchmark.
Relative newcomers HEWP and DBSP both track currency-hedged variants of our benchmark. HEWP gets its equity exposure by holding shares of EWP, while DBSP directly holds the underlying stocks. In practice though, this distinction will have very little impact on performance. Both funds Fit extremely well on a size and sector basis, but the currency-hedging feature means that realized performance will be very different—for better or worse—when the Euro moves against the US dollar. (Insight updated 03/28/17)

All Funds (4)

96
96.306436
92
92.194095
74
74.233604
N/A
0

ETF.com Grade as 03/23/17

Equity: Spain - Total Market