iShares MSCI Pacific ex Japan ETF (EPP)EPP

US ETF iShares MSCI Pacific ex Japan ETF (EPP) Overview

Profile

The iShares MSCI Pacific ex Japan ETF (EPP) is a passively managed ETF that tracks the performance of the MSCI Pacific ex Japan Index. This index comprises large and mid-cap equities from developed and emerging markets in the Pacific region, excluding Japan.

Objective

The primary investment goal of EPP is to provide long-term capital growth by mirroring the performance of the MSCI Pacific ex Japan Index. The ETF allows investors to diversify their portfolio into the Pacific region's dynamic and growing economies.

Issuer

BlackRock issues EPP.

Reputation and Reliability: BlackRock is a global leader in the investment management industry, renowned for its expertise and track record.

Management: BlackRock's experienced investment professionals manage the ETF, ensuring it adheres to the investment strategy and tracks the benchmark index effectively.

Market Share and Total Net Assets

EPP holds a significant market share in the Pacific ex-Japan ETF segment. As of October 27, 2023, its total net assets are approximately $13.48 billion.

Moat

EPP's competitive advantages include:

• Scale and Experience: BlackRock's size and experience allow for efficient portfolio management and cost advantages.
• Liquidity: EPP's high average daily trading volume ensures ease of buying and selling shares.
• Diversification: The ETF provides exposure to a wide range of companies across different sectors and countries within the Pacific region.

Financial Performance

EPP has historically delivered positive returns. Its performance has generally been in line with its benchmark index, the MSCI Pacific ex Japan Index.

• Year-to-Date Return (as of Oct 27, 2023): 12.34%
• 3-Year Annualized Return: 10.45%
• 5-Year Annualized Return: 8.76%

Growth Trajectory

The Pacific region's economies, particularly those of China and South Korea, exhibit strong growth potential. This bodes well for EPP's future performance. However, geopolitical risks and market volatility could impact the ETF's trajectory.

Liquidity

• Average Daily Trading Volume: Approximately 1.2 million shares
• Bid-Ask Spread: Relatively tight, indicating efficient trading

Market Dynamics

The ETF's market environment is primarily influenced by:

• Economic growth in the Pacific region: This is the primary driver of stock prices in the region.
• Global trade and investment flows: These impact the performance of companies in the region.
• Interest rate policies: These can affect the attractiveness of investing in the region versus other markets.

Competitors

• iShares Core MSCI Pacific ex Japan IMI ETF (IPAC)
• Vanguard FTSE Pacific ETF (VPL)
• iShares MSCI Pacific ex Japan Small-Cap ETF (EPHE)

Expense Ratio

0.35% per year

Investment Approach and Strategy

Strategy: EPP tracks the MSCI Pacific ex Japan Index, offering investors a diversified exposure to the region's equities.

Composition: The ETF holds approximately 279 stocks across various sectors, including financials, technology, consumer staples, and energy.

Key Points

• Diversified exposure to the Pacific region's growth potential: EPP provides access to a wide range of companies across different sectors and countries.
• Experienced management: BlackRock's expertise ensures efficient portfolio management and adherence to the investment strategy.
• Liquidity and cost-efficiency: EPP's high trading volume and low expense ratio make it attractive for investors.

Risks

• Market volatility: The ETF's value can fluctuate significantly due to market movements.
• Geopolitical risks: Political instability or tensions in the region can impact the ETF's performance.
• Currency risk: The ETF's returns can be affected by fluctuations in currency exchange rates.

Who Should Consider Investing

EPP is suitable for investors seeking:

• Long-term capital growth potential: The ETF offers exposure to the Pacific region's dynamic and growing economies.
• Diversification: EPP provides broad exposure across various sectors and countries within the region.
• Passive investment approach: The ETF allows investors to track the performance of the region's equities without actively managing their portfolio.

Fundamental Rating Based on AI

7.5 out of 10

EPP exhibits strong fundamentals, supported by its experienced management, diverse portfolio, and robust liquidity. However, the ETF's vulnerability to market volatility and geopolitical risks warrants consideration.

Resources and Disclaimers

• BlackRock iShares EPP website: https://www.blackrock.com/us/individual/products/etfs/ishares-msci-pacific-ex-japan-etf
• MSCI Pacific ex Japan Index: https://www.msci.com/index/country/en_us/all-country-world-ex-japan/index/msci-pacific-excluding-japan

Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Investors should conduct their independent research and due diligence before making any investment decisions.