iShares S&P 500 ETF

IVV Details
Exposure to U.S. companies:iShares S&P 500 ETF (ASX: IVV) tracks the performance of the S&P 500 index and has exposure to large, established U.S. companies. Companies included in the S&P 500 account for disproportionate share of total U.S. Stock market value collectively makes it up to about 81% of total values of U.S. stocks in 2016. This fund offers a return equal to the S&P 500 index. For six months reporting period ended September 2016, the total return for the fund was 6.37. The total net asset value of the fund is about 91 billion, as at December 15, 2016. IVV is a good method to access the S&P500 stocks in the US but does not seem to benefit from lower Australian dollar with respect to change in interest rates.
 

Total Returns (Source: Fund Reports)
 
Further, the fund has a higher P/E ratio and the stock is trading close to its 52-week high price. We believe the stock is “Expensive” at the current market price of $ 312.84

 
IVV Daily Chart (Source: Thomson Reuters) 

iShares Asia 50 ETF 

IAA Details
Internationally diversified fund: iShares Asia 50 ETF (ASX: IAA) is an internationally diversified fund having exposure to large established Asian companies and has total net asset value of about 349 million as at December 15, 2016. The fund has generated 11.6% of total return for six months ended September 2016. As on September 2016, the fund has heavily invested in China with total exposure of 30.69% followed by South Korea representing 24.02%. Hong Kong accounted over 19.99%, Taiwan comprised 17.49% while Singapore represented 7.29%. However, the fund has witnessed volatility in the recent past and now trending below expectations. The stock has risen 11.8% this year to date (as at December 16, 2016) while we feel the same is “Expensive” at the current market price of $ 64.84

 
IAADaily Chart (Source: Thomson Reuters) 

iShares Europe ETF

IEU Details
Focus on European companies:iShares Europe ETF (ASX: IEU) has an exposure to broad range of European companies in a single fund. The fund is heavily invested in United Kingdom with total exposure of 29.96% as on September 2016, followed by France representing 15.10%, Switzerland accounting 14.37%, Germany comprising 13.14% and the balance in rest of Europe. On the other hand, the fund had generated a negative return of 8.9% over a year ended March 2016 and six months’ total return of 2.55% ended September 2016. The fund has fallen from its high levels in June and past few months and now available at attractive levels which is recently showing uptick in prices (5.2% in last one month as at December 16, 2016). We believe this is a “Speculative Buy” at current market price of $ 53.22

 
IEU Daily Chart (Source: Thomson Reuters) 

iShares MSCI Japan ETF

IJP Details
Well diversified sectors: iShares MSCI Japan ETF (ASX: IJP) stock is trading at its 52-week high price, and has exposure to large and mid-sized companies in Japan and tracks the investment results of the MSCI Japan Index. The fund has around 21% exposure to consumer discretionary and about 20% to industrial segment. Financials and information technology account for about 14% and 11%, respectively. 

Growth at net asset value (Source: Fund Reports)
 
The fund has generated one-year return of 2.44% ended August 31, 2016. As at December 15, 2016, the fund has net asset value of 15 billion. On the other hand, the fund has a higher P/E ratio and a low distribution yield. We feel the fund is “Expensive” at the current market price of $ 69.26

 
IJP Daily Chart (Source: Thomson Reuters) 

SPDR S&P WORLD EX AUSTRALIA FUND 

WXOZ Details
Matching index performance: SPDR S&P World Ex Australia Fund (ASX: WXOZ) tracks the performance of S&P Developed ex Australia Large Midcap AUD index. As on November 30, 2016, the fund has generated a year to date return of 3.15% as compared with index return of 3.22%, and has 5.5 million units on issue. The funds estimated 3-5 year earnings per share growth reaching 10.37%. The return on equity is at 16.4% which is slightly higher than the index return. However, the stock is trading close to its 52-week high price while we give an “Expensive” recommendation on the fund at the current market price of $ 25.26

 
WXOZ Daily Chart (Source: Thomson Reuters) 

iShares China Large-cap ETF

IZZ Details
Heavy exposure to finance sector: iShares China Large-cap ETF (ASX: IZZ) has exposure to large Chinese companies listed in Hong Kong and has total net asset value of 3.6 billion as at December 15, 2016. The fund is heavily invested in financial sector with exposure of about 50% followed by Energy which consists of about 13%. Telecommunication accounts for about 11% and Information Technology represents 8% with rest in other sectors. The fund has generated one-year return of 4.31% and generated year to date return of 0.62%. The fund remained volatile since August 2016 and now trending downward. The stock has risen 10.6% in last six months (as at December 16, 2016) and still looks “Expensive” at the current market price of $ 48.51

 
IZZ Daily Chart (Source: Thomson Reuters)

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