European Large Cap

European Large Cap companies are European companies that are valued at 10 billion and above. To learn about how that valuation is calculated, visit our blog on large cap. The next question may be, what qualifies as a European company? Is it developed companies in the European region? Does that include Switzerland and the UK or is it just the “Eurozone”? Each mutual fund groups companies together differently, while some may include 300 large companies from 17 European countries, others may hold 50 big European companies focused only in countries using the euro. The developed market European large-cap funds are drastically different from each other and vary in more measures than how US large cap companies are chosen. Some examples of European Large Cap stocks are Nestle (NSRGY) the largest and well-known food and beverage company in the world, France Telecom (FTE) the leading telecommunications service provider in France and neighboring countries, Royal Dutch Schell (RDS.A) one of the largest energy companies in the world, and Covidien (COV) a Dublin, Ireland-based company that develops, manufactures, and distributes medical devices, pharmaceuticals, and other health-care products worldwide.

Investing in high quality European companies diversifies and spreads out the risk in your portfolio. It is wise to invest in strong large global companies with solid balance sheets outside of the U.S. Do you have a good portion of non-U.S. investments in your portfolio? As global markets shift, it could be a good idea to keep diversification in your portfolio through a balance of emerging markets or European based investments.


written by: ||lauren pearce, associate||