Q: (1) Can you suggest an ETF similar to FEZ but that includes companies outside the Eurozone (i.e. includes Swiss, Swedish and UK companies). I am looking for an ETF that favors large caps, preferably holds not more than a hundred companies. IEV is the closest I could find but it holds over 360 companies. And VGK has over a thousand (>1200).
(2) Am I wrong to think that holding hundreds of companies tends to dilute an ETF’s performance?
(2) Am I wrong to think that holding hundreds of companies tends to dilute an ETF’s performance?
5i Research Answer:
HXX could be one to consider, but it is still more focused on the 'core' Euro areas. As noted, IEV is likely the next best option here.
In general, the more companies/stocks a fund holds, the more market-like or benchmark-like the performance will be. In turn, the lower the likelhood for outperformance (but also underperformance).