European Tech Giants Drive Potential in London Stock Exchange ETFs
London, UK – September 21, 2025 - Investors seeking to maximize their ISA allocations are turning to Exchange Traded Funds (ETFs) listed on the London Stock Exchange, with several options showcasing strong potential for long-term growth. A closer look reveals key holdings in these ETFs, notably European technology leaders, are driving performance and attracting attention.
Among the ETFs gaining traction, holdings like aerospace giant Airbus and semiconductor equipment manufacturer ASML stand out. Airbus benefits from a substantial backlog fueled by demand for fuel-efficient aircraft like the A320neo family, gaining ground on competitor Boeing. Meanwhile, ASML holds a unique position as the sole provider of extreme ultraviolet (EUV) lithography machines, essential for producing advanced semiconductors used by industry leaders such as Taiwan Semiconductor Manufacturing and Samsung.
The importance of ASML’s technology cannot be overstated; without its machines, the production of components like iPhone processors and advancements in Artificial Intelligence would be impossible. However, the concentration of these high-quality stocks – ASML and SAP collectively representing over 13% of the portfolio – introduces a degree of risk should either company engage in significant sell-offs.
Despite this concentration risk, analysts anticipate positive performance for these etfs, bolstered by the quality of the underlying stocks and a near-3% dividend yield.
(This article originally appeared on The Motley Fool UK.)
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Ben McPoland has positions in Nvidia and taiwan Semiconductor Manufacturing. The Motley Fool UK has recommended ASML, advanced Micro Devices, Autodesk, Land Securities Group Plc, LondonMetric Property Plc, Nvidia, Segro Plc, Snowflake, Taiwan Semiconductor Manufacturing, and Tesco Plc. Views expressed on the companies mentioned in this article are those of the writer and thus may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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