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Are international investment better in indexed funds or actively managed? Also, what about mutual funds versus ETFs?
I prefer index funds.
As for mutual fund vs ETF, that entirely depends on how much and how often you plan to contribute. ETFs are good for those who invest large amounts infrequently. Mutual funds are better for those who invest small amounts frequently. That is because ETFs carry commissions and mutual funds do not necessarily have those. But mutual funds have higher MERs/fees on an ongoing basis.
As for mutual fund vs ETF, that entirely depends on how much and how often you plan to contribute. ETFs are good for those who invest large amounts infrequently. Mutual funds are better for those who invest small amounts frequently. That is because ETFs carry commissions and mutual funds do not necessarily have those. But mutual funds have higher MERs/fees on an ongoing basis.
There are 66 international ETFs on Schwab's One Source commission-free list. Expense ratios as low as 0.06%. Here are the first 25 or so.
ETF's vs mutual fund because you can use limit orders. Second reason is that costs are generally lower for ETF's.
Manage funds that will out perform the market are hard to find if you are a buy and hold type investor. I would lean toward ETF's index funds but when you move into small cap stocks and bonds or specialty sectors etc a good manage fund could be better. The problem is finding that manager and that manager staying with the fund.
Are international investment better in indexed funds or actively managed? Also, what about mutual funds versus ETFs?
Depends on who you talk to. I prefer actively managed. But I admit there aren't as many good actively managed funds that charge reasonable fees. These are the two I would consider:
Oakmark International: Expense ratio 1.00% 10 year returns: 4.59% 15 year: 8.30%
The other thing about international investing is the U.S. has historically been one of the best performing stock markets over long periods of time. So I wouldn't go crazy by allocating a lot to international. At the same time, it appears the U.S. stock market is overvalued compared to international markets, so now might be a good time to buy some international stock funds if you don't have any exposure.
i prefer managed . international small caps may be a good place to try .
The problem is that is a very expensive category. Have any suggestions?
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