3 must-have non-U.S. mutual funds to diversify your portfolio – June 24, 2022
Investors may find non-U.S. mutual funds more attractive than those with significant domestic exposure in the current environment of rising Federal Reserve overnight interest rates, record inflation rates and rising crude oil prices. soaring crude oil. In addition, the strengthening of the US dollar due to the tightening of Fed policy has also put foreign mutual funds in a favorable position. Moreover, the indication of a possible recession also created a negative impact on investor sentiment. In this environment, investing in non-US mutual funds can be profitable for investors.
The International Monetary Fund (IMF) World Economic Outlook Report released in April 2022 described the Russian-Ukrainian war as the main reason for slowing global growth and high inflation. Real GDP is expected to grow by 3.3% and 2.4% for advanced economies in 2022 and 2023. However, it is expected to grow by 3.8% and 4.4%, respectively, for emerging markets and developing economies. development during this period. Thus, emerging countries such as Israel, India and China are good alternative destinations for investors who wish to diversify their portfolios and obtain a good return. The IMF projects Israel’s economy to grow 5.0% for 2022 and 3.5% for 2023, India at 8.2% and 6.9% and China at 4.4% and 5 .1%.
Israel invests the most in research and development in the world. It has an entrepreneurial spirit and a skilled workforce, especially in the field of engineering and technology. India is one of the fastest growing countries in the world and home to the largest population of young people in the world. The country offers many investment opportunities in different sectors such as consumer goods, information technology, infrastructure and agriculture. The Indian government has an accommodating policy for foreign investment. China is the most populous country in the world and offers huge growth opportunities for businesses; it has a highly skilled workforce and is the manufacturing base for major global brands. The Chinese government’s investment in infrastructure is unprecedented.
Thus, investing in non-US mutual funds having primarily companies that operate in the aforementioned countries may prove more profitable than funds investing in companies with significant domestic exposure.
So we’ve selected three of these non-U.S. mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), have positive three- and five-year annualized returns, and lower minimum initial investments. at $5,000. Mutual funds, in general, reduce transaction costs and diversify portfolios without a series of commission fees primarily associated with stock purchases (read more: Mutual funds: pros, cons and how they earn money to investors).
Timothy Plan Israel Shared Values Fund (TPEACE – Free Report) invests most of its assets in common stock of companies headquartered or substantially active in Israel, regardless of market capitalization, through American Depositary Receipts (ADR) and investments directly in these companies on foreign exchanges. TPAIX advisors invest in growth stocks that have above-average growth potential in terms of revenue, earnings, cash flow, or other similar criteria.
Edward R. Allen has been the lead manager of TPAIX since October 12, 2011. The fund has 62.17% of its net assets invested in various companies in Israel as of 05/31/2022.
TPAIX’s three- and five-year annualized returns are nearly 14.3% and 11.3%, respectively. TPAIX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.72%,
To see how this fund performed in its category, and other mutual funds ranked 1 and 2, please click here.
Wasatch Emerging Markets Select Fund (WAESX – Free Report) invests most of its assets and borrowings, if any, in equity securities of companies that have significant exposure to emerging countries, regardless of their market capitalization. WAESX advisors primarily invest in sectors such as communication services, consumer discretionary, consumer staples, financials, healthcare, industrials and information technology.
Ajay Krishnan has been the lead manager of WAESX since December 13, 2012. The fund has 31.66% of its net assets invested in various companies in India as of 05/31/2022.
WAESX’s three- and five-year annualized returns are 13.3% and 9.1%, respectively. WAESX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 1.37%.
BNY Mellon Emerging Markets Global Fund (DGIEX – Free Report) invests most of its assets together with borrowings, if any, in common stocks such as equities, derivatives and other strategic instruments with similar economic characteristics of companies headquartered or registered is in emerging countries. DGIEX advisors consider emerging market countries that are included in the Morgan Stanley Capital International Emerging Markets Index (MSCI EM Index).
Paul Birchenough has been lead manager of DGIEX since December 10, 2020, the fund has 26.57% of its net assets invested in various companies in China as of 05/31/2022.
DGIEX’s three-year and five-year annualized returns are 12.4% and 6.5%, respectively. DGIEX has a Zacks Mutual Fund Rank #1 and an annual expense ratio of 0.99%.
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