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.
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- Investors Rethink Emerging Market ETFs (FT)
- Graph: The Structure of Russia’s Foreign Debt (Research Affiliates)
- How MSCI’s Global Investable Market Indexes Methodology Influences Trillions of Dollars (Kraneshares)
- Saudi Arabia’s Tadawul Stock Market and Foreign Investment (AFC)
- Thai Bourse Aims for ‘Sexy’ IPOs to Boost Appeal for Investors (Nikkei Asia)
- India to Offer More Investment Options Through ADRs (The Asset)
- Emerging Markets Back in Favour Among European Investors (Citywire)
- Prudent Ways to Invest in Frontier Markets (WSJ)
- Margetts Fund Management Manager: Emerging Markets Rally Has Gone Too Far (FE Trustnet)
- Will Frontier Markets Follow the Same Emerging Market Pattern? (The Telegraph)
- Sovereign Wealth Funds Increase Investments in Emerging Markets (SCMP)
- Jupiter’s Croft: If History Repeats Itself, Russian Stocks Could Double (FE Trustnet)
- Falling Oil Prices Puts a Spotlight on Malaysia’s Debt (Reuters)
- China’s Year of the Dog Bounds Into View (Allianz Global Investors)