EFTs - Europe/UK - Please help

[noelfitz]

I hope to invest in one or two EFTs (or equivalent), probably focusing on Europe/UK equities. If they have dividends, so much the better.

At present my favourite candidates are Rabo/"BlackRock GIF Europe Eq Index A2 EUR Acc", matching the MSCI Europe Index, and Davy/"db x-trackers Stoxx® Europe 600 UCITS ETF (DR) 1C (EUR)".

Any advice would be welcome, both on these and EFTs in general as suitable investments.


I am grateful for all the comments I already received, but would appreciate more.

 

[rekhib]

Hi noelfitz, without knowing anything about the 2 funds that you mention, the "Acc" at the end of the first one usually means it's capitalising/accumulating so it's doubtful you'd receive any dividend income off that. With regard to the second ETF, Deutche Bank's products (db x-trackers) tend to have high entry/exit charges that aren't included in the TER (total expense ratio).

The main things to consider when buying ETFs are 1) what markets/sectors/cap/style are you exposed to, 2) what currency is the security in and 3) what are the expenses.

Perhaps look at Vanguard UK's mutual funds as an alternative to the above. They have rock-bottom TER's (around 0.25%) and you can buy them as either capitalising or income funds so you can choose which is more important to you, capital growth or income. E.g. Vanguard UK's FTSE U.K. Equity Income Index Fund yields about 4% and you could combine that with the FTSE Developed Europe ex-UK if you're looking for broad European exposure.

In general, ETFs and Mutual Funds are good investment vehicles, far less risky than picking individual stocks.