While many of the world’s investors remain focused on "The Magnificent Seven" — a group of tech stocks that significantly outperformed in 2023 — a small group of European stocks has quietly outperformed most of the world.

Based on the first letters of their names, Goldman Sachs dubbed this group “Granolas,” and it accounted for 50% of gains of the Stoxx Europe 600 Index for the past year.

Who are the Granolas?

Granolas refers to a group of 11 European stocks operating in the healthcare and pharmaceutical sector, with an addition of luxury, consumer staples, industrial manufacturing and software technology. They include:

Granolas vs. The Magnificent Seven

There are three main advantages these stocks hold over The Magnificent Seven.

Investing In Granolas Via ETFs

Although many of the Granola stocks trade on U.S. exchanges, domestic investors might consider the VanEck Pharmaceutical ETF (NASDAQ:PPH), which invests in the largest pharmaceutical companies.

Pacer Trendpilot European Index ETF (BATS:PTEU) is another option. It is biased toward large-cap Eurozone equities, with 3/5 top holdings in GRANOLAS.

European investors should opt for iShares Core EURO STOXX 50 ETF. It offers over 40% of portfolio exposure to Granolas, or SPDR MSCI Europe Health Care UCITS ETF, which focuses on European healthcare industry.

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