Is Fidelity Europe (FIEUX) currently a smart choice for mutual funds?

There are many choices in the Mutual Fund Equity Report category, but where should you start your research? Well, one fund that might not be worth investigating is Fidelity Europe (FIEUX). FIEUX holds a Zacks Mutual Fund Rank of 5 (Strong Sell), which is based on nine forecasting factors such as size, cost and past performance.

Fund History / Manager

Fidelity is responsible for FIEUX and the company is based in Boston, MA. Fidelity Europe debuted in October 1986 and FIEUX has managed to accumulate approximately $ 851.56 million in assets, according to the latest information available. The current manager of the fund is a team of investment professionals.

Performance

Obviously, what investors are looking for in these funds is a strong performance relative to their peers. This fund has a 5-year total annualized return of 10.63% and is in the top third of its peers in the category. Investors who prefer to analyze shorter time frames should look at its 3-year annualized total return of 12.14%, which puts it in the top third over that time frame.

When examining the performance of a fund, it is also important to note the standard deviation of returns. The lower the standard deviation, the less volatility the fund experiences. The standard deviation of FIEUX over the past three years is 18.93% compared to the category average of 16.2%. Over the past 5 years, the fund’s standard deviation is 16.49% compared to the category average of 13.43%. This makes the fund more volatile than its peers over the past five years.

Risk factors

Investors should keep in mind beta, an important way to measure the risk of a mutual fund in relation to the market as a whole. FIEUX has a 5-year beta of 0.93, which means it is likely to be less volatile than the market average. Alpha is an additional metric to consider, since it represents the performance of a portfolio on a risk-adjusted basis relative to a benchmark, which in this case is the S&P 500. With a negative alpha of -5.04, the managers of this portfolio find it difficult to select stocks that generate returns above the benchmark.

Expenses

For investors, it is essential to take a closer look at the parameters related to costs, as costs are increasingly important for investments in mutual funds. Competition is intensifying in this space, and a lower-cost product is likely to outperform its otherwise identical counterpart, all other things being equal. In terms of fees, FIEUX is a no-fee fund. It has an expense ratio of 1.08% compared to the category average of 1.36%. Thus, FIEUX is in fact less expensive than its peers from a cost point of view.

Investors should be aware that with this product, the minimum initial investment is $ 0; each subsequent investment has no minimum amount.

Final result

Overall, Fidelity Europe (FIEUX) has a low Zacks Mutual Fund ranking, and in conjunction with its comparatively strong performance, medium downside risk and lower fees, this fund appears to be a somewhat weak choice for investors. right now.

Do not stop here for your research on Mutual Fund Equity Report funds. We also have a lot more on our site to help you find the best possible fund for your portfolio. Be sure to check out www.zacks.com/funds/mutual-funds for more information on the world of funds, and feel free to compare FIEUX to its peers for more information. For analysis of the rest of your portfolio, be sure to visit Zacks.com for our full suite of tools that will help you investigate all of your stocks and funds in one place.

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Mary I. Bruner