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EWU - ETF AI Analysis

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EWU

iShares MSCI United Kingdom ETF (EWU)

Rating:73Outperform
Price Target:
EWU, the iShares MSCI United Kingdom ETF, earns a solid overall rating largely because of strong core holdings like HSBC, AstraZeneca, Rio Tinto, and Barclays, which show robust financial performance, supportive technical trends, and strategic initiatives that enhance growth prospects. Some holdings such as Shell, Rolls-Royce, Unilever, and BP introduce caution due to short-term technical weakness, high valuations, or leverage concerns. The main risk factor is the ETF’s concentration in a single country (the UK), which means its performance is closely tied to the health of the UK economy and market conditions.
Positive Factors
Strong Overall Year-To-Date Performance
The ETF has delivered solid gains so far this year, showing that its portfolio has generally been working well for investors.
Leading Holdings With Strong Momentum
Several of the largest positions, including major banks, energy companies, and industrial names, have shown strong performance, helping drive the fund’s returns.
Broad Sector Diversification Within the UK
The fund spreads its investments across many sectors such as financials, consumer defensive, health care, industrials, and energy, which helps reduce the impact of weakness in any single industry.
Negative Factors
High Concentration in a Few UK Giants
A small number of large UK companies make up a significant share of the portfolio, which increases the fund’s sensitivity to news and events affecting those specific firms.
Notable Lagging Defensive Holdings
Some key consumer and health care stocks in the top holdings have been weak recently, which can drag on the ETF’s overall performance.
Higher Expense Ratio for a Broad Market ETF
The fund’s fee is relatively high for a simple country-focused index ETF, meaning more of the return is eaten up by costs over time.

EWU vs. SPDR S&P 500 ETF (SPY)

EWU Summary

EWU is the iShares MSCI United Kingdom ETF, which aims to track the MSCI United Kingdom Index, giving you broad exposure to the UK stock market in one investment. It holds many types of companies, including banks, consumer brands, energy, and healthcare firms. Well-known names in the fund include HSBC Holdings and AstraZeneca, along with Shell and Unilever. Someone might invest in EWU to diversify internationally and tap into the long-term growth potential of the UK economy. A key risk is that the value of the ETF can rise or fall with the overall UK stock market.
How much will it cost me?The iShares MSCI United Kingdom ETF (EWU) has an expense ratio of 0.5%, meaning you’ll pay $5 per year for every $1,000 invested. This is slightly higher than average for ETFs because it tracks a specific international index, which can involve more costs compared to passively managed U.S. market ETFs.
What would affect this ETF?The iShares MSCI United Kingdom ETF (EWU) could benefit from positive trends in the UK economy, such as growth in the financial and healthcare sectors, which are heavily represented in its holdings. However, it may face challenges from rising interest rates, which could impact financial stocks, or economic uncertainty tied to Brexit-related trade negotiations. Additionally, fluctuations in energy prices could affect major holdings like Shell and BP.

EWU Top 10 Holdings

EWU is leaning heavily on big U.K. banks and energy names, with HSBC and Barclays acting as key engines of recent gains, helped by rising financials and a supportive rate backdrop. BP and Shell add extra fuel, as energy stocks have been climbing and giving the fund a cyclical tilt. On the defensive side, AstraZeneca and Unilever have been more mixed to lagging, softening the overall ride and showing that not all staples and healthcare are firing. With all holdings U.K.-listed, this ETF is a pure play on Britain’s market mood.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
HSBC Holdings10.95%$448.82M£266.07B67.15%
80
Outperform
AstraZeneca8.16%$334.26M$268.02B14.23%
80
Outperform
Shell (UK)7.69%$315.01M£179.22B24.06%
73
Outperform
Rolls-Royce Holdings4.77%$195.63M£118.32B40.99%
71
Outperform
Unilever4.48%$183.75M£107.67B-0.58%
72
Outperform
British American Tobacco3.93%$160.93M£100.71B18.86%
71
Outperform
BP p.l.c.3.52%$144.06M£81.22B34.10%
71
Outperform
GlaxoSmithKline3.37%$137.90M£81.30B37.23%
77
Outperform
Rio Tinto3.11%$127.50M£117.21B52.07%
82
Outperform
Barclays2.77%$113.68M£68.11B31.33%
78
Outperform

EWU Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
46.38
Positive
100DMA
46.05
Positive
200DMA
44.72
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For EWU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 46.89, equal to the 50-day MA of 46.38, and equal to the 200-day MA of 44.72, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWU.

EWU Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$4.10B0.50%
73
Outperform
$9.42B0.50%
63
Neutral
$9.21B0.09%
65
Neutral
$890.03M0.09%
72
Outperform
$41.67M0.59%
67
Neutral
$38.00M0.80%
69
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
EWU
iShares MSCI United Kingdom ETF
48.68
10.18
26.44%
EZU
iShares MSCI Eurozone ETF
BBEU
JPMorgan BetaBuilders Europe ETF
FLGB
Franklin FTSE United Kingdom ETF
EWUS
iShares MSCI United Kingdom Small Cap ETF
FKU
First Trust United Kingdom AlphaDEX Fund
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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