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Here's the 3 Best European Mutual Funds That Can Soar Even Higher This Summer
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As we head towards the halfway point of 2016 and roll into summer, it is a perfect time to review strong performers across the markets, as well as see who’s poised to continue their strong years. While mutual funds are more of a long-term investment vehicle, it is still important to review their performances chronically, and thus far in 2016 the following three European mutual funds are at the top of the performance list. So far all three funds have produced strong returns, but with the European Union producing stronger recent growth numbers than previously estimated, the rest of 2016 has great potential for this group.
US Global Investors Emerging Europe Fund
The US Global Investors Emerging Europe Fund, which invests primarily in the common stock of companies located in the emerging markets of Europe, has been the best performing European-focused mutual fund thus far in 2016 with a YTD return of 12.69%. The fund is managed by Frank E. Holmes of US Global, and has net assets of nearly $45 million, in addition to an expense ratio of 2.6. The allocation of assets is made up mostly by foreign stock with 12.53%, emerging markets with 17.53%, and foreign bonds with 21.55% of total assets. Though only having a Zacks Mutual Fund Rank #3 (Hold), the rest of the year still holds great potential for this fund.
Deutsche World Dividend Fund Class C
Coming in at number 2 thus far in 2016 performance is the Deutsche World Dividend Fund (Class C), with a YTD return of 7.30%. Managed by a team at Deutsche, the fund has net assets upwards of $151 million, and an expense ratio of 1.02. The fund’s assets are mostly allocated to foreign stock, with a 44.58% allocation. SCGEX currently is a Zacks Mutual Fund Rank #1 (Strong Buy), and the rest of the year could be even better than it has been thus far.
Finally, the third best performing European mutual fund thus far in 2016 is the Fidelity Nordic Fund, with a YTD return of 4.03%. Managed by Stefan Linblad of Fidelity, the fund invests in securities of Danish, Finnish, Norwegian, and Swedish issues, and other investments that are tied economically to the Nordic region. FNORX has an expense ratio of .99, and nearly $481 million in net assets, of which 52.74% are allocated to foreign stock. While the year has been solid so far, with a Zacks Mutual Fund Rank #1 (Strong Buy), this fund is poised for a strong finish in the second half of the year.
Bottom Line
The three funds listed above are all off to strong starts thus far in 2016, but this summer and the rest of the year could hold the potential for even higher returns. Eurostat, the official data agency of the European Union, released statistics on GDP growth for the first quarter this year and they were higher than previously estimated, which boosted the full-year GDP estimate as well. Previously thought to be a major laggard in global growth, it seems as though the European Union is better off most thought.The projected GDP growth of 1.7% for 2016 would be higher than earlier estimates, and would be the highest growth figure since 2010 for the region. If there is solid growth in Europe throughout the rest of this year, EUROX, SCGEX, and FNORX all stand to continue, and maybe even outperform, their strong starts in 2016, and should be on the radar for not only mutual fund investors, but all investors looking for solid long-term positions.
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Here's the 3 Best European Mutual Funds That Can Soar Even Higher This Summer
As we head towards the halfway point of 2016 and roll into summer, it is a perfect time to review strong performers across the markets, as well as see who’s poised to continue their strong years. While mutual funds are more of a long-term investment vehicle, it is still important to review their performances chronically, and thus far in 2016 the following three European mutual funds are at the top of the performance list. So far all three funds have produced strong returns, but with the European Union producing stronger recent growth numbers than previously estimated, the rest of 2016 has great potential for this group.
US Global Investors Emerging Europe Fund
The US Global Investors Emerging Europe Fund, which invests primarily in the common stock of companies located in the emerging markets of Europe, has been the best performing European-focused mutual fund thus far in 2016 with a YTD return of 12.69%. The fund is managed by Frank E. Holmes of US Global, and has net assets of nearly $45 million, in addition to an expense ratio of 2.6. The allocation of assets is made up mostly by foreign stock with 12.53%, emerging markets with 17.53%, and foreign bonds with 21.55% of total assets. Though only having a Zacks Mutual Fund Rank #3 (Hold), the rest of the year still holds great potential for this fund.
Deutsche World Dividend Fund Class C
Coming in at number 2 thus far in 2016 performance is the Deutsche World Dividend Fund (Class C), with a YTD return of 7.30%. Managed by a team at Deutsche, the fund has net assets upwards of $151 million, and an expense ratio of 1.02. The fund’s assets are mostly allocated to foreign stock, with a 44.58% allocation. SCGEX currently is a Zacks Mutual Fund Rank #1 (Strong Buy), and the rest of the year could be even better than it has been thus far.
Fidelity Nordic Fund (FNORX - Free Report)
Finally, the third best performing European mutual fund thus far in 2016 is the Fidelity Nordic Fund, with a YTD return of 4.03%. Managed by Stefan Linblad of Fidelity, the fund invests in securities of Danish, Finnish, Norwegian, and Swedish issues, and other investments that are tied economically to the Nordic region. FNORX has an expense ratio of .99, and nearly $481 million in net assets, of which 52.74% are allocated to foreign stock. While the year has been solid so far, with a Zacks Mutual Fund Rank #1 (Strong Buy), this fund is poised for a strong finish in the second half of the year.
Bottom Line
The three funds listed above are all off to strong starts thus far in 2016, but this summer and the rest of the year could hold the potential for even higher returns. Eurostat, the official data agency of the European Union, released statistics on GDP growth for the first quarter this year and they were higher than previously estimated, which boosted the full-year GDP estimate as well. Previously thought to be a major laggard in global growth, it seems as though the European Union is better off most thought.The projected GDP growth of 1.7% for 2016 would be higher than earlier estimates, and would be the highest growth figure since 2010 for the region. If there is solid growth in Europe throughout the rest of this year, EUROX, SCGEX, and FNORX all stand to continue, and maybe even outperform, their strong starts in 2016, and should be on the radar for not only mutual fund investors, but all investors looking for solid long-term positions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>