5 Mutual Funds for European Stocks
Adding some European flavor can be good for your portfolio—but beware overexposure.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Investors who want to invest in European stocks have plenty of options among mutual funds and exchange-traded funds. But check first whether you already have a large chunk of money in Europe. Many diversified global and international stock funds have a large percentage of their portfolio in European stocks. For example, Dodge & Cox International Stock (symbol DODFX), a member of the Kiplinger 25, recently had 60% of its assets in companies based in Europe (including the United Kingdom).
If you want a no-load fund that owns nothing but European shares, consider T. Rowe Price European Stock (PRESX). Over the past 10 years, the fund gained 9.2% annualized, compared with 8.5% for the average European mutual fund. Manager Dean Tenerelli focuses on how proficient companies are at generating a return on shareholders’ capital. In the past year, that has led him to some Spanish and Italian banks that survived the global financial crisis.
If active management isn’t your thing, you’ll appreciate Vanguard European Stock Index (VEUSX). The fund, which tracks the FTSE Developed Europe index, holds about 500 stocks. But note: The index is dominated by British, French and Swiss companies, which account for 61% of the portfolio. The exchange-traded Vanguard FTSE Europe ETF (VGK) tracks the same index. Annual expenses for both the fund and the ETF are just 0.12%.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Another ETF, iShares MSCI EMU (EZU), takes the opposite tack. It excludes British and Swiss stocks and owns only shares of companies in 11 developed-country members of the euro currency zone. Its fees, at 0.50% annually, are much higher than those of the Vanguard funds.
One question to ask about any overseas fund: Does it try to hedge against currency fluctuations? Some do and some don’t. That can make a big difference depending on what happens with the dollar’s value against the euro, British pound, Swiss franc and other currencies. In our list, the Dodge & Cox fund does hedge in some cases, while the T. Rowe Price fund doesn’t. Most index funds, including ETFs, don’t hedge unless they’re specifically designed to do so.
-
How to Turn Your 401(k) Into A Real Estate EmpireTapping your 401(k) to purchase investment properties is risky, but it could deliver valuable rental income in your golden years.
-
My First $1 Million: Retired Nuclear Plant Supervisor, 68Ever wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
How to Position Investments to Minimize Taxes for Your HeirsTo minimize your heirs' tax burden, focus on aligning your investment account types and assets with your estate plan, and pay attention to the impact of RMDs.
-
Best Mutual Funds to Invest In for 2026The best mutual funds will capitalize on new trends expected to emerge in the new year, all while offering low costs and solid management.
-
Smart Ways to Invest Your Money This YearFollowing a red-hot run for the equities market, folks are looking for smart ways to invest this year. Stocks, bonds and CDs all have something to offer in 2024.
-
Vanguard's New International Fund Targets Dividend GrowthInvestors may be skittish about buying international stocks, but this new Vanguard fund that targets stable dividend growers could ease their minds.
-
Best 401(k) Investments: Where to InvestKnowing where to find the best 401(k) investments to put your money can be difficult. Here, we rank 10 of the largest retirement funds.
-
7 Best Stocks to Gift Your GrandchildrenThe best stocks to give your grandchildren have certain qualities in common. Here, we let you know what those are.
-
How to Find the Best 401(k) InvestmentsMany folks are likely wondering how to find the best 401(k) investments after signing up for their company's retirement plan. Here's where to get started.
-
How to Master Index InvestingIndex investing allows market participants the ability to build their ideal portfolios using baskets of stocks and bonds. Here's how it works.
-
The Best Vanguard ETFs to BuyThe best Vanguard ETFs all feature rock-bottom fees, large asset bases and long trading histories. Here are a few of our favorites.
