EWUS VS HEWU: A Comprehensive Comparison of ETFs
4 min read
By Beqa Bumbeishvili, ETF Insider

EWUS VS HEWU: A Comprehensive Comparison of ETFs

Exchange-Traded Funds (ETFs) offer investors a versatile tool for diversifying their portfolios, and when it comes to investing in the United Kingdom, options are abundant. This article will focus on a comparative analysis of two such ETFs: EWUS (iShares MSCI United Kingdom Small-Cap ETF) and HEWU (iShares Currency Hedged MSCI United Kingdom ETF). We'll delve into several facets including their tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

EWUS > HEWU: Overview

EWUS and HEWU are designed to give investors exposure to the UK market, but they do so in different ways. EWUS focuses on small-cap companies in the UK, while HEWU targets large-cap companies and hedges against currency risk. These different strategies result in distinct risk profiles and potential for returns.

EWUS > HEWU: Issuers and Their Distinct Strategies

Both ETFs are managed by iShares, a leader in the ETF landscape. However, the strategies differ significantly; EWUS aims to track the investment results of the MSCI United Kingdom Small Cap Index, whereas HEWU tracks the MSCI United Kingdom Index while mitigating currency fluctuations. Understanding the issuer and the strategy behind each ETF can help investors make a more informed choice.

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EWUS > HEWU: Sector Distribution and Top Holdings

EWUS has a diversified portfolio that spans multiple sectors such as Financials, Industrials, and Consumer Discretionary, with key holdings in companies like Playtech and Bellway. HEWU, on the other hand, is tilted towards Financials and Healthcare sectors, featuring holdings like HSBC and AstraZeneca. Being aware of the sectors and top holdings can guide investors in aligning their portfolios with their risk tolerance and investment goals.

EWUS > HEWU: Capitalization and Assets Under Management (AUM)

HEWU generally has a larger AUM, indicating a higher level of investor confidence and potentially greater liquidity. EWUS, with its focus on small-cap companies, has a smaller AUM but offers the potential for higher growth, albeit at a higher risk. Comparing the capitalization and AUM of these ETFs provides insights into their popularity and stability.

EWUS > HEWU: Tracking and Exposure

EWUS aims to closely track the MSCI United Kingdom Small Cap Index, offering investors a chance to tap into the high-growth potential of small-cap stocks in the UK. HEWU, on the other hand, provides a more stable investment by tracking large-cap companies in the UK and hedging against currency risks. Your choice between these tracking methods will depend on your investment objectives and risk tolerance.

Conclusion

While both EWUS and HEWU offer targeted exposure to the UK market, they do so in markedly different ways. Whether you're interested in the high-growth potential of small-cap stocks with EWUS or seeking a more stable, currency-hedged investment with HEWU, understanding these ETFs is vital. For those keen on diving deeper, ETF Insider is an invaluable tool, offering a user-friendly app that provides comprehensive details on these and other financial instruments.

Disclaimer: This article does not provide any investment advisory services.

EWUS ETF issuer
EWUS ETF official page

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