Stoxx 600 vs MSCI Europe

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Topic Author
Astones
Posts: 322
Joined: Mon Apr 12, 2021 12:48 pm

Stoxx 600 vs MSCI Europe

Post by Astones »

I was thinking about including a European market ETF in my portfolio. What are ylir thoughts about these indices and would you recommend one over the other?
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tre3sori
Posts: 460
Joined: Wed Jul 24, 2019 3:13 am

Re: Stoxx 600 vs MSCI Europe

Post by tre3sori »

I guess you meant Stoxx Europe 600 Index.
Here the factsheet for MSCI Europe: https://www.msci.com/www/fact-sheet/msc ... x/05836521
And here for Stoxx Europe 600: https://www.stoxx.com/document/Bookmark ... /SXXGR.pdf
Stoxx Europe 600 has more components and reaches down further into mid and small caps. Don't be mislead by the sector percentages in the factsheets. In the Stoxx factsheet the financial sector is split up into subcomponents.
The underlying index is one thing, the other thing is the products available that track the index.
I don't know where you live, but here in Germany Stoxx Europe 600 index with iShares Stoxx Europe 600 UCITS ETF (DE) seems the way to go if you go by trading volume, liquidity etc. The iShares Core MSCI Europe UCITS ETF is cheaper though.
Let the actual products speak for themselves:
Image
Morningstar never gets the colors right: blue iShares Stoxx Europe 600 UCITS ETF (DE), green iShares Core MSCI Europe UCITS ETF.
The slightly higher risk/greater exposure to mid and small caps seems to be an advantage for iShares Stoxx Europe 600 UCITS ETF (DE) in the long run.
The information provided is intended to be entertaining. It is not to be construed as professional advice. Use it at your own risk.
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Schlabba
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Re: Stoxx 600 vs MSCI Europe

Post by Schlabba »

Astones wrote: Fri Apr 23, 2021 6:41 pm I was thinking about including a European market ETF in my portfolio. What are ylir thoughts about these indices and would you recommend one over the other?
There is also the Vanguard FTSE Developed Europe UCITS ETF, just to add to your dilemma :happy

I would pick the one with the lowest TER and highest number of stocks.
Topic Author
Astones
Posts: 322
Joined: Mon Apr 12, 2021 12:48 pm

Re: Stoxx 600 vs MSCI Europe

Post by Astones »

Schlabba wrote: Sat Apr 24, 2021 2:53 am
There is also the Vanguard FTSE Developed Europe UCITS ETF, just to add to your dilemma :happy

I would pick the one with the lowest TER and highest number of stocks.
It sounds reasonable. I might do just that.

tre3sori wrote: Sat Apr 24, 2021 12:41 am
Morningstar never gets the colors right: blue iShares Stoxx Europe 600 UCITS ETF (DE), green iShares Core MSCI Europe UCITS ETF.
The slightly higher risk/greater exposure to mid and small caps seems to be an advantage for iShares Stoxx Europe 600 UCITS ETF (DE) in the long run.
Thank you, that was very informative.
Sebas
Posts: 6
Joined: Thu Feb 16, 2017 9:00 am
Location: Buenos Aires, Argentina

Re: Stoxx 600 vs MSCI Europe

Post by Sebas »

Plus you guys may want to also look into Lyxor ISIN 0908500753 Stoxx 600 Europe. It has a lower TER. If you dig into the financial statements, Lyxor has certain odd interest and bank charges, which are not broken down into subcomponents. Bottom line, a lower TER seems to be offset by higher expenses (not unusual). Conclusion: those are all pretty similar. Have a great day!
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