Dear Community,

Throughout last year, I found myself repeatedly wanting to focus on the European market as well. But the same old arguments kept dissuading me: The European market doesn’t deliver; Europe doesn’t meet my desire for a growth-oriented, high-yield portfolio, etc.

I also asked myself: Which sectors and industries do I want to cover? Where do I see enough potential to justify taking the risk? To what extent do I want to align my portfolio with this strategy?

In today’s episode, Alles auf Aktien: Fiese Gewinnwarnung bei BMW und Europas KI-Unabhängigkeitsaktien , something caught my attention:

A basket from Goldman Sachs, consisting of 64 European stocks, with the wonderful name: EU AI Capex.

Performance over the past five years: 17.5 percent annualized, including dividends.

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And which industries are covered?

• Semiconductors
• Machinery
• Electricity
• Networks
• Cables
• Energy
• Automation

Unfortunately, existing ETFs such as the iShares STOXX Europe 600 Utilities UCITS ETF or the iShares STOXX Europe 600 Technology UCITS ETF do not cover all of these sectors.

"Sounds exactly like what I was looking for," I thought to myself, and used my day off today to create an index tailored to my preferences.

Goldman Sachs has listed 12 of the 64 holdings, including their percentage allocations. The remaining 52 holdings appear to be known only to institutional investors, as the index isn’t publicly available.

So I created my own “Pie” through Trading 212. More specifically, a “Pie” is a personalized investment portfolio in which I can invest in multiple stocks and ETFs according to a percentage allocation I set myself and save toward them simultaneously via a single automated savings plan—with no expense ratio and no order fees.

It would go beyond the scope of this post to write about every individual security, which is why I chose this particular one. I didn’t make these decisions entirely on my own. Gemini helped me with this. In the end, we settled on 37 securities.

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On Selecting the Holdings

Together, we gradually added European market leaders across the entire value chain. We always kept an eye on the sectors—none should be left out.

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On the Percentage Allocation

It’s important to note upfront that the “pie” will be funded with 150 euros per month going forward. Since the minimum investment amount at Trading 212 is one euro, the smallest weighting in the “pie” must be at least 0.7%:

1.00 euro / 0.70% = 142.85 euro

The percentage allocation was then based on pricing power and global scalability.

More details on this may follow in a later post.

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About the Stocks

From EU AI Cortex Basket taken over by Goldman Sachs:

• Infineon ($IFX (+1,35 %)): 7.10%
• ASML ($ASML (+0,08 %)): 6.80%
• Siemens ($SIE (-0,32 %)): 6.00%
• Rolls-Royce ($RR. (-0,24 %)): 5.40%
• Enel ($ENEL (-0,62 %)): 5.40%
• Schneider Electric ($SU (-8,67 %)): 5.40%
• ABB ($ABBN (+0,12 %)): 5.00%
• Iberdrola ($IBE (+0,41 %)): 4.90%
• Siemens Energy ($ENR (-0,18 %)): 4.70%
• ASM International ($ASM (+0,09 %)): 3.70%
• Prysmian ($PRY (-1,74 %)): 3.60%
• BE Semiconductor ($BESI (-0,46 %)): 3.20%

Supplemented by the following stocks:

• VAT Group ($VACN (+1,13 %)): 4.50%
• STMicroelectronics ($STM (+0,99 %)): 2.50%
• Legrand ($LR (-1,53 %)): 2.00%
• RWE ($RWE (-0,81 %)): 1.95%
• Nokia ($NOKIA (-2,21 %)): 1.90%
• E.ON ($EOAN (-0,23 %)): 1.90%
• National Grid ($NG. (+0,94 %)): 1.80%
• SSE plc ($SSE (+0,86 %)): 1.70%
• EDP Renováveis ($EDPR (-3,44 %)): 1.60%
• Red Eléctrica ($RDEIY (-1,02 %)): 1.50%
• Nexans ($NEX (-2,16 %)): 1.50%
• Hochtief ($HOT (-0,67 %)): 1.50%
• Enagás ($ENG (-2,51 %)): 1.40%
• United Utilities ($UU. (-0,24 %)): 1.40%
• Spirax-Sarco ($SPX (+0,58 %)): 1.30%
• Centrica ($CNA (-1,68 %)): 1.30%
• Aixtron ($AIXA (-0,24 %)): 1.30%
• Orsted ($ORSTED (-4,15 %)): 1.15%
• Verbund AG ($VER (+0,87 %)): 1.10%
• Soitec ($SOI (+1,28 %)): 1.10%
• Safran ($SAF (-0,32 %)): 1.00%
• Thales ($HO (+2,1 %)): 1.00%
• Geberit ($GEBN (-0,81 %)): 0.90%
• NKT A/S ($NKT (-0,42 %)): 0.80%
• Andritz ($ANDR (+0,67 %)): 0.70%

The figures $IG (-1,52 %) , $SRG (-1,31 %) , $TRN (-0,69 %) , $ALFA (+2,08 %) , $ATCO B (+0,11 %) or $AEMMY can unfortunately only be traded via CFDs on Trading 212. Therefore, these securities could not be included.

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Trading 212 Pie

The Pie now accounts for about 10% of my portfolio, and I’ll be contributing 150 euros to it each month going forward.

I am convinced that Europe will succeed in becoming more independent. However, in my opinion, a self-sufficient Europe without any dependence whatsoever is simply not possible (keyword: globalization).

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Pie Composition

By country:

• Germany: 24.35%
• France: 15.4%
• Netherlands: 13.7%
• United Kingdom: 12.9%
• Switzerland: 10.4%
• Italy: 9%
• Spain: 7.8%
• Denmark: 1.95%
• Austria: 1.8%
• Portugal: 1.6%

By sector:

• Technology: 32.3%
• Industrial & Capital Goods: 31.5%
• Utilities & Energy Infrastructure: 36.2%

By industry:

• Semiconductors & Data Center Chips: 27.8%
• Energy Equipment & Grid Technology: 25.5%
• Electricity Generators: 16.1%
• Physical Networks & Storage: 10.1%
• Cable Infrastructure: 5.9%
• Vacuum Technology & Components: 6.5%
• Network Technology & Connectivity: 1.9%
• Data Centers & Industrial Construction: 3.1%
• Cyber and Perimeter Security: 3.1%

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I’m curious to see how the pie chart will develop.

P.S.: You can find the pie chart on Trading 212 under the name Euro AI Backbone GS to copy.

$UU. (-0,24 %)

The British utility company is once again increasing its payout - with a dividend yield of 5.14%, the FTSE 100 company is well above the market average. But what is behind the dividend policy?

With a dividend yield of 5.14%, United Utilities is one of the top payers in the FTSE 100 - but the P/E ratio of just under 26 raises questions about the valuation.

344 million pounds for shareholders

Anyone holding United Utilities shares on July 18, 2025 has reason to be happy: the company is paying a dividend of GBP 0.52 per share for the 2025 financial year - four percent more than in the previous year.

A total of GBP 344.1 million will thus flow to shareholders. In an environment of rising capital market interest rates and growing uncertainty, such clear dividend promises send a clear signal.

The dividend yield at the reporting date was 5.14 percent - a remarkable figure compared to the FTSE 100 average of around 3.8 percent. For income-oriented investors, United Utilities thus remains one of the more reliable addresses among the British blue chips.

Reliable payer - with limited growth

The utility company from the north-west of England is not an exciting tech stock, but a rock-solid water and wastewater supplier - with a regulated business model, stable cash flows and a high degree of predictability.

This is exactly what institutional investors value. The business model may seem boring, but it is crisis-proof - and that pays off, literally.

For the past financial year 2025, United Utilities reported sales of GBP 2.145 billion and earnings per share of GBP 0.39.

This corresponds to a price/earnings ratio (P/E ratio) of around 26 - not exactly cheap, but explainable in view of the stable margins and reliable dividend policy. The company's management remains true to its policy: the top priority is a predictable payout, not short-term share price fantasy.

Water – Chemistry in Everyday Life

Today’s topic has been in the spotlight, largely due to Nestlé $NESN (-0,61 %) has been in the spotlight over the past few months. But even on hot summer days, there’s constant discussion about this essential element of life and the business behind it.

What’s the story with Nestlé?

Nestlé is almost constantly the subject of criticism. I expressly ask that you refrain from commenting on the company’s activities or expressing personal opinions in the comments section below this post. The “Nestlé Waters” division operates production facilities in approximately 34 countries, for example, for the bottled water brand “Pure Life.” The criticism centers on production sites in areas where water is traditionally scarce, and where pumping further lowers the groundwater level. I’ll leave it open as to whether Nestlé should bear primary blame in this regard. In any case, it’s important to keep in mind that water licenses are officially sold to Nestlé in all of these countries. Nevertheless, some YouTubers have now realized that they can generate a lot of attention—and thus money—by denouncing international corporations. I hope, at least, that they’ll keep this in mind in the future when they’re enjoying their Wagner pizza or KitKat during live streams. Otherwise, that would amount to a double standard…

Whatever one’s stance on the matter may be. There is certainly a risk of nationalization in the event of water shortages at private water utilities. For that reason, I would generally rule out investing in such companies. However, the private sector is indispensable when it comes to drinking water treatment. The individual products have such a wide range of applications that they cannot be used specifically for water.

But what is the situation in Germany?

Based on the Food Act, Germany has the Drinking Water Ordinance. The ordinance’s goal is to protect human health and ensure quality and purity. Since the 2012 update, it has also addressed issues related to Legionella. Water utilities are responsible for compliance.

The details are defined more precisely in the annexes to the Drinking Water Ordinance itself. https://www.gesetze-im-internet.de/trinkwv_2001/BJNR095910001.html

But how do I go about making water usable?

Of course, this depends primarily on your region. Water always falls into different quality classes and must be treated accordingly. According to the Federal Environment Agency, just under 63% of drinking water is sourced from groundwater. However, there are significant differences, particularly when comparing the east and west. The unregulated and reckless planned economy of the former GDR has left its mark on the environment even today. However, there is generally significant contamination along the lines of major industrial centers. While the Saale, Oder, Ruhr, and Ems rivers in particular bear the marks of industrialization, the soils surrounding the chemical industrial sites in central Germany remain severely degraded. I have drawn these findings from the Water and Soil Atlas.

But why this lengthy introduction?

Both the air and the soil contain countless contaminants and even toxic particles. Rain washes these away, causing them to seep into the soil and ultimately into the groundwater.

As a result, we must now find suitable methods to maintain the quality of our drinking water.

We therefore have the option of selectively removing these substances from the water using mechanical, thermal, or chemical methods.

How does that work?

Due to differences in regional water quality, drinking water treatment must, of course, always be considered on a case-by-case basis. Nevertheless, the first step generally involves chemical treatment with ozone. Through mechanical separation stages—such as sedimentation and filtration—as well as chemical separation processes involving flocculation and pH regulation, the treated drinking water enters the public water supply. The authorities regularly take samples, which are then tested in independent laboratories.

But who actually benefits from drinking water treatment?

From a personal perspective, I view the plant as a private drinking water producer, such as Nestlé or Danone, $BN (-2,58 %) as risky. There is too great a risk of being criticized in the public eye, which makes it all the more likely that bottled water sales could be halted. Furthermore, especially in countries experiencing water shortages, one can certainly expect the nationalization of production and treatment facilities.

Beyond that, there are lucrative and promising opportunities to invest in suppliers.

An investment in drinking water treatment is inevitably linked to wastewater treatment as well.

The most prominent private-sector players in this field are American Water Works $AWK (-1,6 %) , known as the “Dividend King.” Its direct competitor—if one can even call it competition in geographical terms—is Essential Utilities $WTRG (-1,57 %) , as well as United Utilities $UU. (-0,24 %) in the United Kingdom.

Incidentally, Veolia $VIE (-0,36 %) , with its subsidiary Veolia Water, holds a dominant position. It holds countless stakes in municipal utilities and water companies. According to its own website, the company supplies approximately 5 million people in Germany with drinking water and treats their wastewater.

Even beyond direct drinking water treatment, there are highly lucrative suppliers of drinking water solutions and quality assurance services. The best-known example is probably Xylem $XYL (+0,74 %) . In addition to fluid technology—which includes pump manufacturing and other equipment—the analytics division is a bright spot for investors. Its broad portfolio covers the entire spectrum of water analytics. Thus, investors benefit not only from municipal water systems but, above all, from industrial customers who are subject to regulatory requirements. It is nearly impossible to identify a direct competitor with such a broad presence in this segment.

If one were to try nonetheless, KSB’s pump division $KSB (-0,69 %) is a prime example in Europe. In the U.S., however, IDEX $IEX (+1,26 %) can offer an alternative in the field of technical pumps.

Several companies have also specialized in the field of chemical water and wastewater treatment.

Ecolab $ECL (+1,29 %) , better known for cleaning and disinfecting agents, has been owned by Nalco Water since 2011. Its focus here is on water and wastewater treatment additives, which are also integral to any drinking water treatment process. Notable among these are slime inhibitors for biocides and Legionella, as well as corrosion inhibitors and hardness stabilizers.

Another notable competitor is DuPont $DD (+0,81 %) , specifically its “Water & Protection” division. Its focus is on special resins that can adsorb and filter specific substances from the water. Depending on the application, this extends into the nanofiltration and ultrafiltration ranges. Ion exchangers can also be used to ensure a higher level of water purity.

Have you used water today? If so, you’ve probably already come into contact with one of these products.