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Friday, July 13, 2012

Mutual Funds Vs. ETFs: European Equities

Europe Simulator
Europe Simulator (Photo credit: wigu)
According to Morningstar, has in the past year, the average return on funds in the category of European equity markets have been negative and hovered around 17.70%. The category was much stronger in the past three years and has returned close to 7.99% annually. But over the last five years, which includes the credit crisis, the return appears again in negative territory, with an average annual loss of more than 7% The above data, Navigating Europe has been pretty frustrating for investors in recent years. On average, mutual funds that invest in Europe, or regions that are close to Europe, posted negative returns with only a small window in the positive area between the credit debacle, the current round of sovereign debt problems and needs national banking systems.
All actively managed funds have a dismal record, surpassing the underlying indices. The small-cap international chamber was recently released as a category in which active managers at least have some skill set in the beating of their bogeys proved bound, but for the most part managers have no added value for investors.
excessive fees were also to blame. In the European fund category, calculates the most funds tracked by Morningstar annual expense ratios that were significantly greater than 1%. . Many fees are close to 1.5% while a few were charged in the European small-cap category, rates above 2% ... Continue to read.
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