We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
According to Lipper’s latest fund flow report, stock funds investing globally registered strong inflows in 2018. At the same time, global equity funds reported inflows of $0.13 billion for the week ending Jan 23. Despite the global economic downturn and persistent trade war issues, a few economies still present decent growth opportunities.
Therefore, if you have an appetite for risk, global mutual funds are excellent options, especially for those looking to widen exposure across countries in 2019.
Germany’s Economic Woes Overhyped
Per a report on Jan 4, joblessness in Germany declined to its record low in December. The metric is lingering at 5%. This also marks an extension of the unemployment rate's five-year steady decline. Further, this depicts that companies from the country have faith in its economy.
Unemployment in Europe's largest economy decreased to 2.26 million in December. This marks a seasonally adjusted decline of 14,000 from the previous month. Further, the metric supported Bundesbank's outlook that growth momentum in the country will remain intact despite a global economic meltdown triggered by trade war and Brexit.
Fears gripped investors across the globe that Eurozone's biggest economy is headed for a recession in the days to come. Such speculations stemmed out of a decline in the country's industrial production by 1.9%, reportedly the biggest since August 2015. Market watchers termed the dip as catastrophic.
However, what needs to be realized is that the decline was caused by a 4.1% reduction in consumer goods production due to a slump in new car registrations. The country's car industry accounts for 20% of the industrial production and a 9.9% reduction in November wreaked havoc for industrial revenues.
Asia to Remain Robust
The People's Bank of China (PBOC) announced on Jan 25 that it was planning to release approximately $37 billion in additional cash to banks in a bid to counter an economic slowdown. The motive behind such a move is certain changes in the targeted reserve requirement ratio reductions for banks in China. Such developments boosted investor sentiments.
Per the latest report from Japan’s cabinet ministry, the country is experiencing its longest phase of expansion since World War II ended. The report also stated that such growth was buoyed by solid domestic demand and a robust labor market.
Further, Japan is expected to have grown for the 74th consecutive month since December 2012. This would mean that the World’s third largest economy has surpassed its previous longest phase of expansion between February 2002 and February 2008, also termed as the Izanami Boom.
Meanwhile, the International Monetary Fund (IMF) predicted that India is poised to grow at the rate of 7.5% in 2019-2020. The global lending agency is of the view that India’s economy will benefit from low oil prices, relatively slower pace of monetary tightening as well as easing inflationary pressure.
3 Global Equity Funds to Buy Now
We have selected three global equity mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5,000.
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).
Vanguard Global Equity Investor (VHGEX - Free Report) uses bottom-up stock analysis to invest a large share of its assets in equities of companies all over the globe. It invests in both growth and value companies irrespective of their market capitalization. The fund also diversifies its allocation across different industries.
This Zacks sector – Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
VHGEXcarries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.48%, which is below the category average of 1.12%. The fund generated three and five-year returns of 7.3% and 5.2%, respectively.
American Century Global Growth Investor (TWGGX - Free Report) seeks growth of capital. TWGGX invests mainly in those companies that are based in developed countries including the United States. The fund focuses on investing in securities of companies that record increase in earnings and revenues at a significant pace.
This Zacks sector – Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
TWGGXcarries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 1.08%, which is below the category average of 1.12%. The fund generated three and five-year returns of 5.6% and 4.2%, respectively.
Fidelity Worldwide (FWWFX - Free Report) invests in securities, including common stocks, issued by companies based in different countries all over the world. FWWFX measures the industry position and financial condition, and economic and market conditions of each of the companies before investing. The fund seeks capital growth.
This Zacks sector – Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FWWFXcarries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.93%, which is below the category average of 1.12%. The fund generated three and five-year returns of 7.2% and 5.1%, 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 >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
3 Global Equity Mutual Funds for 2019
According to Lipper’s latest fund flow report, stock funds investing globally registered strong inflows in 2018. At the same time, global equity funds reported inflows of $0.13 billion for the week ending Jan 23. Despite the global economic downturn and persistent trade war issues, a few economies still present decent growth opportunities.
Therefore, if you have an appetite for risk, global mutual funds are excellent options, especially for those looking to widen exposure across countries in 2019.
Germany’s Economic Woes Overhyped
Per a report on Jan 4, joblessness in Germany declined to its record low in December. The metric is lingering at 5%. This also marks an extension of the unemployment rate's five-year steady decline. Further, this depicts that companies from the country have faith in its economy.
Unemployment in Europe's largest economy decreased to 2.26 million in December. This marks a seasonally adjusted decline of 14,000 from the previous month. Further, the metric supported Bundesbank's outlook that growth momentum in the country will remain intact despite a global economic meltdown triggered by trade war and Brexit.
Fears gripped investors across the globe that Eurozone's biggest economy is headed for a recession in the days to come. Such speculations stemmed out of a decline in the country's industrial production by 1.9%, reportedly the biggest since August 2015. Market watchers termed the dip as catastrophic.
However, what needs to be realized is that the decline was caused by a 4.1% reduction in consumer goods production due to a slump in new car registrations. The country's car industry accounts for 20% of the industrial production and a 9.9% reduction in November wreaked havoc for industrial revenues.
Asia to Remain Robust
The People's Bank of China (PBOC) announced on Jan 25 that it was planning to release approximately $37 billion in additional cash to banks in a bid to counter an economic slowdown. The motive behind such a move is certain changes in the targeted reserve requirement ratio reductions for banks in China. Such developments boosted investor sentiments.
Per the latest report from Japan’s cabinet ministry, the country is experiencing its longest phase of expansion since World War II ended. The report also stated that such growth was buoyed by solid domestic demand and a robust labor market.
Further, Japan is expected to have grown for the 74th consecutive month since December 2012. This would mean that the World’s third largest economy has surpassed its previous longest phase of expansion between February 2002 and February 2008, also termed as the Izanami Boom.
Meanwhile, the International Monetary Fund (IMF) predicted that India is poised to grow at the rate of 7.5% in 2019-2020. The global lending agency is of the view that India’s economy will benefit from low oil prices, relatively slower pace of monetary tightening as well as easing inflationary pressure.
3 Global Equity Funds to Buy Now
We have selected three global equity mutual funds carrying a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy) that are poised to gain from such factors. Moreover, these funds have encouraging three and five-year returns. Additionally, the minimum initial investment is within $5,000.
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).
Vanguard Global Equity Investor (VHGEX - Free Report) uses bottom-up stock analysis to invest a large share of its assets in equities of companies all over the globe. It invests in both growth and value companies irrespective of their market capitalization. The fund also diversifies its allocation across different industries.
This Zacks sector – Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
VHGEXcarries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.48%, which is below the category average of 1.12%. The fund generated three and five-year returns of 7.3% and 5.2%, respectively.
American Century Global Growth Investor (TWGGX - Free Report) seeks growth of capital. TWGGX invests mainly in those companies that are based in developed countries including the United States. The fund focuses on investing in securities of companies that record increase in earnings and revenues at a significant pace.
This Zacks sector – Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
TWGGXcarries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 1.08%, which is below the category average of 1.12%. The fund generated three and five-year returns of 5.6% and 4.2%, respectively.
Fidelity Worldwide (FWWFX - Free Report) invests in securities, including common stocks, issued by companies based in different countries all over the world. FWWFX measures the industry position and financial condition, and economic and market conditions of each of the companies before investing. The fund seeks capital growth.
This Zacks sector – Global-Equity product has a history of positive total returns for more than 10 years. To see how this fund performed compared in its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FWWFXcarries a Zacks Mutual Fund Rank #2 and has an annual expense ratio of 0.93%, which is below the category average of 1.12%. The fund generated three and five-year returns of 7.2% and 5.1%, 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 >>