Daily ETF Watch: ALPS Europe Fund Debuts

November 03, 2014

ALPS rolls out a large-cap Europe ETF tracking a Stoxx index.

ALPS on Thursday rolled out a new fund targeting the Stoxx Europe 600 Index, joining a number of different exchange-traded funds already on the market that target big companies in Europe in and out of the eurozone.

The ALPS Stoxx Europe 600 ETF (STXX)  tracks one of Europe’s most widely used indexes, which covers 600 of the largest stocks in Europe’s developed markets. STXX comes with an annual expense ratio of 0.25 percent, or $25 for each $10,000 invested, putting the new fund in the middle of two other existing funds pricewise.

The countries from which the index draws its components include Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The iShares Europe ETF (IEV | B-96) has a similar focus but significantly fewer holdings and more of a large-cap tilt, as it tracks the S&P Europe 350 Index. It has an expense ratio of 0.60 percent, and $2.73 billion in assets.

The more broadly focused Vanguard FTSE Europe ETF (VGK | A-98) has roughly 500 holdings and comes with a much lower expense ratio of 0.12 percent. It also has more than $11 billion in assets under management.

STXX represents an index with 600 components, so it reaches even deeper into Europe’s developed markets. Although it is roughly twice what VGK costs, its broader exposure could differentiate it enough to attract investors.

 

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