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3 Global Equity Funds to Buy Notwithstanding the Banking Crisis
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Wall Street did well to redeem itself in March amid the serious scare emanating from the banking sector crisis. The United States Treasury and the Federal Reserve went out on a limb to reassure investors about the support it would provide to the ailing banks and their depositors. There are clear signs from the Fed that a rate-hike pause is on the horizon.
Economic data have started to reinforce the central bank’s belief that the economy continues to be resilient despite the pressures put on it by macroeconomic factors and the stringent monetary policy. Globally, there are signals that other major central banks may also be nearing the end of the rate-hike cycle.
In such an environment, global equity funds have continued to receive inflows as fears of an impending recession have eased. After a January high and February despair, international funds held steady throughout March, even as the banking sector crisis was unfolding.
In the volatile markets that we have lately seen, the need to diversify one’s portfolio over geographies and territories has directed investors to venture into new, emerging markets. Data for 23,903 emerging market funds showed that equities received $1.1 billion worth of inflows in the week ended Mar 29. Asia has been a focal area, with a $2.3 billion inflow.
Despite currency exchange rate risks, global equity funds seem lucrative for investors at this juncture as it is opening up emerging markets for them. Even equity funds from the United Kingdom have staged a comeback this week, with UK investors shrugging off fears about the banking sector. Global UK-focused funds saw an inflow of $1.2 billion, in a reversal of the outflows seen in January and February.
In summary, global equity funds provide much-required diversification and growth potential in a market that is expected to remain volatile for a while. Hence, astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three global equity funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000 as well as carry a low expense ratio.
Fidelity Global Commodity Stock Fund (FFGIX - Free Report) seeks to invest the majority of its assets in companies principally engaged in energy, metals, and agriculture throughout the world. For its investment purposes, FFGIX uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions.
Peter Belisle has been the lead manager of FFGIX since Mar 31, 2022. The three top country weights for FFGIX are 64.3% in the United States, 16% in Canada, and 8% in the United Kingdom.
FFGIX’s 3-year and 5-year annualized returns are 23.7% and 10.3%, respectively. Its net expense ratio is 0.92% compared to the category average of 1.11%. FFGIX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Janus Henderson VIT Global Research Portfolio (JAWGX - Free Report) seeks long-term capital growth by investing in common stocks of companies of any size throughout the world. JAWGX normally invests in issuers from at least five different countries, including the United States, and offers dividends in June and December and capital gains in June.
Matthew Peron has been the lead manager of JAWGX since Apr 28, 2020. The three top country weights for JAWGX are 68.6% in the United States, 8.3% in the United Kingdom and 4.6% in Canada.
JAWGX’s 3-year and 5-year annualized returns are 9.2% and 7.5%, respectively. Its net expense ratio is 0.64% compared to the category average of 1.12%. JAWGX has a Zacks Mutual Fund Rank #2.
T. Rowe Price QM Global Equity Fund (TQGEX - Free Report) normally invests the majority of its net assets in common stocks and may invest in companies of any market capitalization, but usually focuses on large- and mid-cap companies. TQGEX normally invests at least 40% of its net assets in securities of companies outside the United States, including emerging markets.
Sudhir Nanda has been the lead manager of TQGEX since Apr 14, 2016. The three top country weights for TQGEX are 60.2% in the United States, 5.1% in Japan and 4.4% in France.
TQGEX’s 3-year and 5-year annualized returns are 8.9% and 6.2%, respectively. Its net expense ratio is 0.73% compared to the category average of 0.95%. TQGEX has a Zacks Mutual Fund Rank #1.
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3 Global Equity Funds to Buy Notwithstanding the Banking Crisis
Wall Street did well to redeem itself in March amid the serious scare emanating from the banking sector crisis. The United States Treasury and the Federal Reserve went out on a limb to reassure investors about the support it would provide to the ailing banks and their depositors. There are clear signs from the Fed that a rate-hike pause is on the horizon.
Economic data have started to reinforce the central bank’s belief that the economy continues to be resilient despite the pressures put on it by macroeconomic factors and the stringent monetary policy. Globally, there are signals that other major central banks may also be nearing the end of the rate-hike cycle.
In such an environment, global equity funds have continued to receive inflows as fears of an impending recession have eased. After a January high and February despair, international funds held steady throughout March, even as the banking sector crisis was unfolding.
In the volatile markets that we have lately seen, the need to diversify one’s portfolio over geographies and territories has directed investors to venture into new, emerging markets. Data for 23,903 emerging market funds showed that equities received $1.1 billion worth of inflows in the week ended Mar 29. Asia has been a focal area, with a $2.3 billion inflow.
Despite currency exchange rate risks, global equity funds seem lucrative for investors at this juncture as it is opening up emerging markets for them. Even equity funds from the United Kingdom have staged a comeback this week, with UK investors shrugging off fears about the banking sector. Global UK-focused funds saw an inflow of $1.2 billion, in a reversal of the outflows seen in January and February.
In summary, global equity funds provide much-required diversification and growth potential in a market that is expected to remain volatile for a while. Hence, astute investors should consider such funds at present. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three global equity funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), have positive three-year and five-year annualized returns and minimum initial investments within $5000 as well as carry a low expense ratio.
Fidelity Global Commodity Stock Fund (FFGIX - Free Report) seeks to invest the majority of its assets in companies principally engaged in energy, metals, and agriculture throughout the world. For its investment purposes, FFGIX uses fundamental analysis of factors such as each issuer's financial condition and industry position, as well as market and economic conditions.
Peter Belisle has been the lead manager of FFGIX since Mar 31, 2022. The three top country weights for FFGIX are 64.3% in the United States, 16% in Canada, and 8% in the United Kingdom.
FFGIX’s 3-year and 5-year annualized returns are 23.7% and 10.3%, respectively. Its net expense ratio is 0.92% compared to the category average of 1.11%. FFGIX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Janus Henderson VIT Global Research Portfolio (JAWGX - Free Report) seeks long-term capital growth by investing in common stocks of companies of any size throughout the world. JAWGX normally invests in issuers from at least five different countries, including the United States, and offers dividends in June and December and capital gains in June.
Matthew Peron has been the lead manager of JAWGX since Apr 28, 2020. The three top country weights for JAWGX are 68.6% in the United States, 8.3% in the United Kingdom and 4.6% in Canada.
JAWGX’s 3-year and 5-year annualized returns are 9.2% and 7.5%, respectively. Its net expense ratio is 0.64% compared to the category average of 1.12%. JAWGX has a Zacks Mutual Fund Rank #2.
T. Rowe Price QM Global Equity Fund (TQGEX - Free Report) normally invests the majority of its net assets in common stocks and may invest in companies of any market capitalization, but usually focuses on large- and mid-cap companies. TQGEX normally invests at least 40% of its net assets in securities of companies outside the United States, including emerging markets.
Sudhir Nanda has been the lead manager of TQGEX since Apr 14, 2016. The three top country weights for TQGEX are 60.2% in the United States, 5.1% in Japan and 4.4% in France.
TQGEX’s 3-year and 5-year annualized returns are 8.9% and 6.2%, respectively. Its net expense ratio is 0.73% compared to the category average of 0.95%. TQGEX has a Zacks Mutual Fund Rank #1.
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 >>