(DELF) L&G Europe Equity - Ratings and Ratios

The L&G Europe Equity (Responsible Exclusions) UCITS ETF Share Class EUR Accumulating (Ticker: DELF) is designed to provide exposure to large-cap equities across Europe, with a focus on responsible investing. The fund tracks the Morningstar DM Eur TME NR EUR Index, which screens for certain ESG criteria, excluding companies involved in controversial weapons, tobacco, and fossil fuels. This ETF is listed on XETRA, offering investors a liquid and cost-efficient way to gain access to the European large-cap market.

From a technical perspective, DELF has shown resilience, trading above its 20-day, 50-day, and 200-day moving averages. The 20-day moving average of 16.97 suggests recent upward momentum, with the last price at 17.26. The ATR of 0.12 indicates relatively low volatility, making it suitable for risk-averse investors. Average daily volume of 2,164 shares over the past 20 days reflects moderate liquidity, which is typical for European ETFs in this category.

Fundamentally, the ETF manages an AUM of €729.27 million, demonstrating investor confidence in its strategy. The funds focus on responsible exclusions aligns with the growing demand for ESG-compliant investments. As of the latest data, the portfolio is diversified across key European sectors, with a strong emphasis on financials, industrials, and consumer staples.

Looking ahead, the next three months are expected to be influenced by both technical and fundamental factors. Technically, if DELF continues to trade above its 50-day moving average of 16.36, it may signal further upward momentum, potentially testing resistance levels near 17.50. However, should the price fall below the 200-day moving average of 15.92, it could indicate a broader market downturn. The RSI, currently at 60, is approaching overbought territory, which may lead to a short-term pullback.

Fundamentally, the ETFs performance will likely be driven by Europes economic recovery, monetary policy decisions by the ECB, and corporate earnings. With inflation concerns lingering, sectors with pricing power may outperform. Additionally, the funds ESG exclusions may shield it from potential negative impacts on fossil fuel-related stocks, though this could also limit exposure to sectors experiencing a rebound in energy demand. Overall, the fund is well-positioned to benefit from Europes equity market recovery while maintaining its ESG focus.