5 Ways to Ride the Europe Rally

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5 Ways to Ride the Europe Rally

Diversified Europe Funds

Fidelity 5 Ways to Ride the Europe RallyIf you have a 401k and have limited options, or if you simply prefer to err on the side of diversity, there are a number of Europe funds looking good in both the ETF space and among Europe mutual funds.

Fidelity Worldwide Fund (FWWFX) has about $1.3 billion in total assets under management. This mutual fund is allocated about 50% in U.S. stocks, with top holdings that include Google (GOOG) and Citigroup (C), but the rest of the portfolio is spread around the world — 30% in Europe, almost 10% in Japan and the rest everywhere from Canada to Hong Kong. This is a good way to hedge your bets but get a significant footprint in Europe. FWWFX is up 20% year-to-date to outperform the S&P 500.

In the ETF space, the iShares MSCI EAFE ETF (EFA) is another good option. EAFE stands for Europe, Asia and Far East, so you lose the U.S. exposure but add more weight elsewhere. Right now 21% of the EFA ETF is in Japan, but about two-thirds is focused in Europe and the U.K. Top holdings include Swiss consumer giant Nestle (NSRGY) and London-based bank HSBC (HBC).


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/5-ways-to-ride-the-europe-rally/.

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