Investors Stick With Actively Managed Foreign Stock Funds (AP)
Despite the rise of ETFs and index funds, the AP recently reported that investors are still putting money into actively managed foreign stock funds which have attracted $68 billion over the last year. In contrast and over the last 12 months, investors withdrew a net $92 billion from actively managed US stock funds while depositing $156 billion into funds that track the S&P 500 and other US stock indexes.
One possible explanation for the difference is that many investors believe they have more opportunities to capitalize on mispriced stocks in foreign markets than in domestic ones and are willing to pay the higher fund manager fees that actively managed funds come with in order to profit from those markets.
To read the whole article, Investors say ‘bye,’ but not ‘ciao,’ to stock pickers, go to the website of the Associated Press.
- Prudent Ways to Invest in Frontier Markets (WSJ)
- Vietnam Closed End Funds: Improving Outlook & Attractive Valuations (Numis)
- Whitechurch Securities: Buy Actively Managed India Funds Rather Than ETFs (FE Trustnet)
- Emerging Markets Back in Favour Among European Investors (Citywire)
- Saudi Arabia’s Tadawul Stock Market and Foreign Investment (AFC)
- Vietnamese Verses Chinese Retail Investors (AFC)
- JPMorgan’s Mowat Talks About Iraq, EM Fund Flows and India (Economic Times)
- Investors Could Short Hong Kong to Hedge Long Shanghai Positions (BOCOM International)
- Hermes’ Greenberg: Overweight in India But Avoiding Modi Stocks (FE Trustnet)
- Why Small Cap Emerging Market Funds Win Big and How to Pick the Right Fund (Barron’s)