One of the richest continents in the world, Europe consists of both mature markets and emerging economies. The European Union represents the largest economy in the world and is expected to grow at a rapid pace as more countries join the regional bloc. Its developed nations offer safe destinations for investors’ capital, emerging markets offer exciting growth prospects for those willing to take on a higher degree of risk. Mutual funds focusing on Europe are back in favor again as the region offers healthy prospects for investors.
Below we will share with you 5 top rated European mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all European funds, then click here.
Fidelity Europe (FIEUX) seeks capital appreciation over the long term. A large share of the fund’s assets is utilized to purchase European securities and other instruments with economic linkages to the continent. The fund focuses on acquiring common stock. The European mutual fund has a ten year annualized return of 2.32%.
Melissa M. Reilly is the fund manager and she has managed this European mutual fund since 2008.
Vanguard European Stock Index (VEURX) invests the majority of its assets in common stocks which are part of the MSCI Europe Index. The fund seeks to mimic the performance of the index which is composed of 467 common stocks form sixteen European countries. The European mutual fund returned 6.32% in the last one year period.
The European mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.27% compared to a category average of 1.72%.
T. Rowe Price European Stock (PRESX) seeks long-term capital growth. The fund invests heavily in companies located in European countries. It usually invests in at least five countries at any given time. Common stocks constitute its major investments. The European mutual fund has a five year annualized return of 2.8%.
Dean Tenerelli is the fund manager and has managed this European mutual fund since 2005.
Ivy European Opportunities A (IEOAX) invests at least 80% of assets in equity securities of European companies. The fund focuses on acquiring preferred and common stock and convertible securities. It invests in companies of all sizes, selecting those small-cap companies which are located in developed markets. The European mutual fund returned 5.24% in the last one year period.
As of June 2010, this European mutual fund held 76 issues, with 3.21% of its total assets invested in Nestle SA.
JPMorgan Intrepid European A (VEUAX) seeks capital appreciation over the long term. The fund focuses on acquiring equity securities of companies with significant business operations in Western Europe. Up to 20% of its assets may be invested in debt securities which are not dollar denominated. The European mutual fund has a ten year annualized return of 3.85%.
The European mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.51% compared to a category average of 1.72%.
To view the Zacks Rank and past performance of all European mutual funds, then click here.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at http://www.zacks.com/funds/mutualfund/
