Buffett ApprenticeEFG-ETF: Steady growth is more important
The ETF EFG tracks excellent growth investment targets in Europe, Australia, and the Far East (mainly Japan and South Korea).
From the product design perspective, it essentially selects the best of the best, encompassing many internationally competitive companies. Looking at the Top 10 holdings, it basically covers leading high-quality enterprises from various countries.
In terms of the industry and country distribution of the investments, Japan holds the largest share, exceeding 20%, followed by France, the UK, Switzerland, Australia, and Germany.
Switzerland is an interesting case here. In our conventional understanding, Switzerland is not particularly known for its manufacturing strength. However, in this small Central European country, there are over a dozen Fortune Global 500 companies. For example: Glencore is the global leader in commodity trading, and many mining and bulk commodities cannot bypass it; Nestlé is the global leader in food manufacturing, deeply embedded in households across various fields; Adecco Group is the global leader in human resources, and LafargeHolcim is a leader in the global building materials industry—these two are less known because they are not B2C businesses; Roche and Novartis hold significant positions in the global pharmaceutical industry, and their performance during the pandemic was commendable; ABB Group is a leader in power and automation, alongside Schneider Electric and Siemens, forming the industry's big three—China's power automation leader NARI Technology learned from ABB and Schneider. Additionally, Zurich Insurance Group, UBS Group, Swiss Re, Credit Suisse, and Chubb are all world-renowned financial companies.
Therefore, Switzerland's relatively high shareholding in the product is largely due to these major companies.
In terms of industry distribution, the fund is primarily focused on manufacturing, followed by non-essential consumer goods and technology, then healthcare and essential consumer goods. It can be said that the tech attributes are not as strong as some tech-focused products.
Since the transmission of the industrial chain takes time, the wave of the AI-driven new tech revolution has not yet significantly impacted EFG. Over the past year, its increase has been less than 10%.
However, this is not a reason to abandon EFG. If investors had bought the dip around October 2023, they might now have a return of about 25%.
Consumer goods are a long-term and stable sector, but manufacturing is the cornerstone of economic development. EFG's steady investment style is also a guarantee of the product's long-term growth.$ISHRS MSCI Eafe Growth(EFG.US)
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