How to Invest in Eurozone Blue-Chip Companies

Generally Blue-Chips are used to refer to high quality large-cap established firms.Unlike small and medium caps blue-chips tend to less volatile and the probability of a firm going bankrupt is very small.

In order to identify the blue-chips of Eurozone countries, investors can use The EURO STOXX 50 Index. This index is comprised of 50 blue-chips from the Eurozone member countries of Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

One simple and easy way to invest in these firms is via the SPDR® EURO STOXX 50® ETF (FEZ). This ETF mimics the performance of the index. The fund has a dividend yield of 3.30% and an assets base of over $2.6 billion. The top three sectors in the fund are financials, industrials and consumer-staples.

The full list of the fund’s holdings are shown below:

1Total SAEnergy
2Anheuser-Busch InBev SAConsumer Staples
3Siemens AGIndustrials
4SAP SEInformation Technology
5SanofiHealth Care
6Bayer AGHealth Care
7BASF SEMaterials
8Unilever NV Cert. of shsConsumer Staples
9Daimler AGConsumer Discretionary
10Allianz SEFinancials
11Banco Santander S.A.Financials
12BNP Paribas SA Class AFinancials
13Deutsche Telekom AGTelecommunication Services
14ING Groep NVFinancials
15Telefonica SATelecommunication Services
16LVMH Moet Hennessy Louis Vuitton SEConsumer Discretionary
17L'Oreal SAConsumer Staples
18AXA SAFinancials
19Danone SAConsumer Staples
20VINCI SAIndustrials
21Schneider Electric SEIndustrials
22ASML Holding NVInformation Technology
23Banco Bilbao Vizcaya Argentaria S.A.Financials
24Industria de Diseno Textil S.A.Consumer Discretionary
25Iberdrola SAUtilities
26Air Liquide SAMaterials
27Eni S.p.A.Energy
28Enel SpAUtilities
29Airbus Group SEIndustrials
30adidas AGConsumer Discretionary
31Nokia OyjInformation Technology
32Intesa Sanpaolo S.p.A.Financials
33Fresenius SE & Co. KGaAHealth Care
34Munich Reinsurance CompanyFinancials
35Orange SATelecommunication Services
36Royal Ahold Delhaize N.V.Consumer Staples
37Deutsche Post AGIndustrials
38Societe Generale S.A. Class AFinancials
39Essilor International SAHealth Care
40Royal Philips NVIndustrials
41CRH PlcMaterials
42Bayerische Motoren Werke AGConsumer Discretionary
43Unibail-Rodamco SEReal Estate
44Safran SAIndustrials
45ENGIE SAUtilities
46Volkswagen AG PrefConsumer Discretionary
47Compagnie de Saint-Gobain SAIndustrials
48Vivendi SAConsumer Discretionary
49Deutsche Bank AGFinancials
50E.ON SEUtilities
54Aperam SAMaterials
55U.S. DollarUnassigned

Source: SPDR

Another way investors can access these European blue chips is to invest in the stocks of these firms individually. With this approach investors can pick and choose the sectors or companies that they want to focus on and avoid the ones they don’t want.

Disclosure: Long Banco Santander SA (SAN),  Banco Bilbao Vizcaya Argentaria S.A (BBVA) , E.ON SE (EONGY), AXA Group (AXAHY) and ING Groep N.V. (ING)

Leave a Reply

Your email address will not be published. Required fields are marked *