EPOL ETF

The iShares MSCI Poland ETF is rated a buy due to its low 7.1x P/E ratio and strong 21% EPS growth rate. Despite recent underperformance and high volatility, EPOL offers significant income potential with a 5.0% yield and a diversified sector exposure. The fund faces risks from currency fluctuations and sector concentration, particularly in Financials, but has technical support above $20.

iShares MSCI Poland ETF offers a 4.4% dividend yield but has a high expense ratio of 0.59%, compared to 0.07% for other emerging market funds. EPOL's portfolio is heavily weighted towards cyclical sectors (68.2%) and has minimal exposure to growth sectors like technology, limiting its long-term growth potential. Despite improving business confidence and manufacturing PMI, Poland's economy remains weak, impacting EPOL's performance, which has significantly underperformed the S&P 500 index.

iShares MSCI Poland ETF (EPOL) offers targeted exposure to Poland's equities market with a unique sector breakdown. EPOL has outperformed broader Europe ETF since October 2022, but both funds have performed similarly over the past year. EPOL provides potential upside in Poland's financial services sector, but may be too top-heavy and lacks exposure to Technology and Healthcare sectors.

Wage growth in Poland means inflation will be higher for longer, meaning rates will be higher for longer. But inflation has still come down nicely so far. This is good for the PLN, and it's good for financials for now, before cost of deposits rises. Expense ratios are a little high, but PEs are very solid at 7.6x, and another year of income growth seems all but guaranteed.

iShares MSCI Poland ETF is a slightly more expensive ETF focused on value-weighted exposures in the Polish market. The performance of the Polish Zloty is important for this ETF, and it has been struggling recently due to factors that should now be in the rear view. Legal risks in the Polish banking sector are subsiding, but there are still concerns about inflation and EPOL is a complex allocation overall.

Wall Street is ending the fourth quarter on a sweet note. After a Downbeat October 2023, stocks surged in November and December on the hopes of Fed rate cuts in 2024.

Against the odds, Poland has been one of Europe's best-performing equity markets. Now that the election is done and dusted, however, many of this year's tailwinds will begin to fade. Relative to consensus earnings expectations, valuations don't screen all that cheaply.

iShares MSCI Poland ETF has shown strong relative strength compared to the S&P 500 in recent timeframes. EPOL has a buy rating due to its compelling valuation and strong performance in the last month. The ETF is heavily weighted in the Financials sector and lacks technology exposure, but offers a value play with low valuation conditions.

The Russia-Ukraine war entered its 19th month in the second half of September. Despite this, the violence shows no signs of letting up.