Per the latest report, the European Commission lowered its economic projection in the area from 1.3% to 1.2% for 2019. Such reports might have given rise to speculation of continued economic weakness in Eurozone but there are some positives to focus on.
The region’s economy advanced more than expected in the first quarter of 2019. Further, eurozone’s unemployment fell to its lowest levels in more than a decade. This indicates the 19-country consortium’s resilience. Such encouraging conditions call for investing in mutual funds from the region.
Eurozone Economic Growth Surpasses Estimates in Q1
Per the latest report from the European Union’s statistics office or Eurostat, eurozone’s economy rose 1.2% year over year in the first quarter of 2019.
Meanwhile, the consensus estimate for the period was 1.1%. The metric rose 0.4% quarter over quarter in the period, up from 0.2% in the last quarter of 2018 and 0.1% in the third quarter.
Eurozone’s Unemployment at 10-Year Low
In the same report, Eurostat also announced that that unemployment in Eurozone fell to 7.7% in March, its lowest level since September 2008. As it stands, of the total workforce in the region, 12.6 million people are currently seeking jobs. This is a decent decline from 12.8 million people searching for jobs in February, accounting for 7.8% of the workforce.
Experts are of the view that decline in joblessness will eventually lead to an increase in consumer prices. Such an event would push the overall inflation in Eurozone to ECB’s target of 2% in the short term.
4 Best-Performing European Mutual Funds
Given such positives, we have highlighted four European mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
T. Rowe Price European Stock (PRESX - Free Report) fund seeks appreciation of capital in the long run by investing in common stocks. This fund invests the lion’s share of its assets in companies from Europe. Normally, the fund is invested in companies of any capitalization from a minimum of five countries.
This Europe - Equity product has a history of positive total returns for over 10 years. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
PRESX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.97%, which is below the category average of 1.19%. The fund has three and five-year returns of 5.1% and 0.6%, respectively.
Fidelity Europe (FIEUX - Free Report) fund seeks appreciation of capital in the long run. It invests primarily in common stocks of different European companies.
This Europe - Equity product has a history of positive total returns for over 10 years. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
FIEUXhas a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.96%, which is below the category average of 1.19%. The fund has three and five-year returns of 5.7% and 1.9%, respectively.
DWS World Dividend Fund - Class S seeks to provide total returns with a focus on both current income and capital appreciation. The fund invests the majority of its net assets in stocks that offer dividend. The fund’s investments mostly include common stocks issued by U.S. and non-U.S. companies. The fund may also invest in preferred stocks and other equity securities such as warrants and convertible securities.
This Europe - Equity product has a history of positive total returns for over 10 years. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
SCGEXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.97%, which is below the category average of 1.11%. The fund has three and five-year returns of 4.1% and 1.9%, respectively.
ProFunds Europe 30 Fund Investor Class (UEPIX - Free Report) seeks returns on investments corresponding to the performance of the ProFunds Europe 30 Index. The index comprises companies whose offices are located within Europe and shares are traded on U.S. bourses or The Nasdaq Stock Market as depositary receipts or ordinary shares.
This Europe - Equity product has a history of positive total returns for over 10 years. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
UEPIXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.78%, which is above the category average of 1.19%. The fund has three and five-year returns of 8.3% and 0.7%, respectively.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Per the latest report, the European Commission lowered its economic projection in the area from 1.3% to 1.2% for 2019. Such reports might have given rise to speculation of continued economic weakness in Eurozone but there are some positives to focus on.
The region’s economy advanced more than expected in the first quarter of 2019. Further, eurozone’s unemployment fell to its lowest levels in more than a decade. This indicates the 19-country consortium’s resilience. Such encouraging conditions call for investing in mutual funds from the region.
Eurozone Economic Growth Surpasses Estimates in Q1
Per the latest report from the European Union’s statistics office or Eurostat, eurozone’s economy rose 1.2% year over year in the first quarter of 2019.
Meanwhile, the consensus estimate for the period was 1.1%. The metric rose 0.4% quarter over quarter in the period, up from 0.2% in the last quarter of 2018 and 0.1% in the third quarter.
Eurozone’s Unemployment at 10-Year Low
In the same report, Eurostat also announced that that unemployment in Eurozone fell to 7.7% in March, its lowest level since September 2008. As it stands, of the total workforce in the region, 12.6 million people are currently seeking jobs. This is a decent decline from 12.8 million people searching for jobs in February, accounting for 7.8% of the workforce.
Experts are of the view that decline in joblessness will eventually lead to an increase in consumer prices. Such an event would push the overall inflation in Eurozone to ECB’s target of 2% in the short term.
4 Best-Performing European Mutual Funds
Given such positives, we have highlighted four European mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
T. Rowe Price European Stock (PRESX - Free Report) fund seeks appreciation of capital in the long run by investing in common stocks. This fund invests the lion’s share of its assets in companies from Europe. Normally, the fund is invested in companies of any capitalization from a minimum of five countries.
This Europe - Equity product has a history of positive total returns for over 10 years. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
PRESX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.97%, which is below the category average of 1.19%. The fund has three and five-year returns of 5.1% and 0.6%, respectively.
Fidelity Europe (FIEUX - Free Report) fund seeks appreciation of capital in the long run. It invests primarily in common stocks of different European companies.
This Europe - Equity product has a history of positive total returns for over 10 years. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
FIEUXhas a Zacks Mutual Fund Rank #2 and an annual expense ratio of 0.96%, which is below the category average of 1.19%. The fund has three and five-year returns of 5.7% and 1.9%, respectively.
DWS World Dividend Fund - Class S seeks to provide total returns with a focus on both current income and capital appreciation. The fund invests the majority of its net assets in stocks that offer dividend. The fund’s investments mostly include common stocks issued by U.S. and non-U.S. companies. The fund may also invest in preferred stocks and other equity securities such as warrants and convertible securities.
This Europe - Equity product has a history of positive total returns for over 10 years. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
SCGEXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.97%, which is below the category average of 1.11%. The fund has three and five-year returns of 4.1% and 1.9%, respectively.
ProFunds Europe 30 Fund Investor Class (UEPIX - Free Report) seeks returns on investments corresponding to the performance of the ProFunds Europe 30 Index. The index comprises companies whose offices are located within Europe and shares are traded on U.S. bourses or The Nasdaq Stock Market as depositary receipts or ordinary shares.
This Europe - Equity product has a history of positive total returns for over 10 years. To see how this fund performed compared to its category, and other #1 and 2 Ranked Mutual Funds, please click here.
UEPIXhas a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.78%, which is above the category average of 1.19%. The fund has three and five-year returns of 8.3% and 0.7%, respectively.
Want key mutual fund info delivered straight to your inbox?
Zacks' free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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