Globe World

Indexing on the Global Stage

Globe World

Looking for a way to get international exposure without too much risk of
getting burned? Though there's no absolutely foolproof investment strategy,
some of the biggest names in investing are turning to international index
funds. In 1999, according to Pensions and Investments, 23% of institutional
investment cash was indexed. And if the past is any indication, small
investors eventually follow the big guns' lead.

Indexing has several advantages. By spreading assets throughout an entire
country, region, or continent, one bum deal can't hurt as much. In the
international arena, where less information, privatization efforts, and
mergers make stock-picking tougher, the numerous-bets approach of indexing
can be comforting. What's more, indexing offers lower fees and a smaller tax
hit.

There's also the guarantee of something essential - a "toe in the
water," as Steven Schoenfeld, Head of Emerging Markets Strategy at Barclays
Global Investors, says. An index investor runs a smaller risk of missing out
on the next winning company, he points out. Making sure to be included in these
potential profit opportunities is an essential factor for Schoenfeld.

That lure is part of what domestic funds offer, and in the international
arena, Schoenfeld says, the "not-missing-out" piece is more crucial. Add the
automatic diversification from any international investment and it's no
wonder insitutional managers are taking a good look at international
indexing.

Meanwhile, in the retail arena, the runaway success of domestic index
funds has prompted fund companies to expand their product lines. As fund
companies rush to introduce new index funds, they're naturally thinking
globally. Everything from a "fund of funds" international index to a
Germany-only index is now available, and more are coming soon.

But is foreign indexing the way to go? IndexFunds.com talked to three
high-profile managers to get their views. To check out all the international
index funds out there, and to hear what the brains at Barclays Global
Investors, Schwab, and Vanguard have to say,
click here.

 

Fund Name
Ticker
Expense Ratio
Tot Ret YTD
Tot Ret 12 Mo
Tot Ret Annlzd 3 Yr
Tot Ret Annlzd 5 Yr
Tot Ret Annlzd 10 Yr
Net Asset Value ($ millions as of 7/31/2000)
Am Century Global Nat Rs Inv
BGRIX
0.68
1.3
-4.28
-1.01
-
-
52.5
AXP International Equity Index D
-
0.64
-
-
-
-
-
23.7*
AXP International Equity Index E
-
0.64
-
-
-
-
-
23.7*
AMIDEX35
AMDEX
-
29.46
78.92
-
-
-
12.4
AMIDEX35 A
AMDAX
2.2
24.78
-
-
-
-
1.3
Calvert World Values International Equity Fund (Class A Shares)
CWVGX
-
15.17
9.53
12.08
-
-
268
Capstone SERV Intern C
CSINX
0.39
-6.27
7.86
-
-
-
45
Deutsche EAFE Equity Idx Prm
BTAEX
0.4
-4.46
17.38
-
-
-
240
DFA Emerging Markets Value
DFEVX
1.75
-
-0.39
-
-
-
53
DFA International Value II
DIVTX
0.55
0.14
-
-
-
-
45
DFA International Value III
DFVIX
0.34
-7.92
10.22
6.27
8.97
-
242
DFA International Value IV
DFVFX
0.44
-9.59
10.65
-
-
-
127
DFA Tax-Managed International Value
DTMIX
n/a
-
8.43
-
-
-
89
Dreyfus Intl Stock Index
DIISX
0.6
-5.02
16.43
9.31
-
-
51.3
E*TRADE International Index
ETINX
0.5
-9.1
-
-
-
-
8.8
Fidelity Spartan Intl Index
FSIIX
0.36
-4.71
17
-
-
-
344.7
First American Intl Index A
FIIAX
1
-4.4
15.82
9.18
9.93
-
3.2
First American Intl Index B
FIXBX
1.75
-4.75
14.83
-
-
-
0.9
First American Intl Index Y
FIICX
0.75
-4.26
15.98
9.7
10.41
-
111.3
MainStay Inst EAFE Instl
NIEAX
0.94
-4.59
14.92
9.08
10.44
-
77.4