Last week, a significant update was made to the “stylebox” that has left many investors pondering their next move in the market. The longer-term returns on various international ETFs and mutual funds have been lackluster, raising concerns about potential downside risks from external shocks.
Exploring the Performance of International Funds:
Let’s delve into the 3-year, 5-year, 10-year, and 15-year annual returns of a selection of international ETFs and mutual funds. It’s essential to analyze these figures to make informed investment decisions.
Notable Portfolio Changes:
Recently, this blog made the decision to sell the fund, a move that was not taken lightly considering David Herro’s impressive track record as a high-quality manager. However, the longer-term alpha of Oakmark Int’l has been dwindling over the past 12-18 months, prompting a switch to the JP Morgan Int’l Value Fund.
Attractive Returns in International Markets:
While the longer-term performance may raise some concerns, the 1-year returns on international investments have been quite appealing. This blog has capitalized on this by investing in the iShares ex China ETF and the Vanguard Developed Markets Index Fund ETF Shares to benefit clients.
Analyzing the Market Trends:
The US secular bull market that spanned 18 years came to an end in March 2000, leading to a significant rotation in the market. There was a shift from technology and large-cap growth to mid-cap, small-cap, value, and emerging markets both in the US and internationally. Notably, China emerged as a major player in driving growth during this period.
Looking Ahead:
As mega-caps begin to lose steam in terms of outperformance, international markets are showing promising signs of growth. It is anticipated that more client funds will flow into international investments, potentially before or after January 1. When it comes to investing, it’s crucial to adopt a long-term perspective and stay focused on your financial goals.
In conclusion, the market dynamics are constantly evolving, and investors must adapt to changing trends to optimize their portfolios. It’s important to note that the information provided is not financial advice but rather an opinion based on historical performance data sourced from Morningstar. Remember, investing always carries the risk of loss, even in the short term.
By understanding these market trends and being proactive in adjusting investment strategies, individuals can better position themselves for financial success and growth in the future.