Continuing uncertainty related to sovereign debt in Europe and the dispute in the US over raising the nation’s debt limit are keeping markets hopping. Volatility appears once again to have moved to the front. We looked for some additional ETF and mutual fund value options and our search turned up both US-based and international funds that might be worth a look during the current turbulence. We’ve looked at three ETFs: iShares Russell 2000 Value Index (NYSE: IWN); iShares Russell Midcap Value Index (NYSE: IWS); and iShares S&P 500 Value Index (NYSE: IVE).
The five open-ended mutual funds are not entirely international, but we wanted an international bias now that Europe’s woes are coming front and center. Those funds are Third Avenue Value Instl (TAVFX), Vanguard International Value Inv (VTRIX), ING International Value A (NIVAX), Fidelity Value Strategies (FSLSX), and Thornburg International Value I (TGVIX).
The iShares Russell 2000 Value Index (NYSE: IWN) is small-cap value fund with assets totaling $4.5 billion. The fund holds shares in more than 1,300 small-cap US firms and includes some high-potential growth firms. The fund has a low expense ratio of 0.41% and year-to-date has posted returns of just over 3%. Shares closed yesterday at $73.19, in the 52-week range of $54.60-$77.00. The fund gets a 2-star rating from Morningstar.
The iShares Russell Midcap Value Index (NYSE: IWS) holds assets totaling $3.1 billion in over 500 US mid-cap companies. The fund’s expense ratio is a low 0.25% and year-to-date returns total 4.78%. Shares closed yesterday at $47.19, within the 52-week range of $35.48-$49.58. The fund gets a 3-star rating from Morningstar.
The iShares S&P 500 Value Index (NYSE: IVE) holds assets totaling $4.4 billion, primarily in deep value, large-cap stocks. The fund replicates the S&P 500 Value Index, holding essentially all 300+ stocks in the index. The fund’s expense ratio is a low 0.18% and year-to-date returns total 2.84%. Shares closed yesterday at $61.29, within a 52-week range of $48.65-$65.26. The fund gets a 2-star rating from Morningstar.
The Third Avenue Value Instl (TAVFX) holds $4.5 billion in total assets of which about a third are North American and two-thirds international. Its two largest holdings are Hong Kong stocks and its third is Korean steelmaker Posco’s US-traded ADRs. The fund’s expense ratio is 1.15% and its NAV at yesterday’s close is $50.97, within a 52-week range of $42.86-$54.81. Year-to-date the fund is off about -1%. The fund gets a 3-star rating from Morningstar.
The Vanguard International Value Inv (VTRIX) holds assets totaling $7.6 billion, of which about 92% are international stocks. Top holdings skew toward pharmaceuticals and energy, with Russia’s Gazprom heading the list. The fund’s expense ratio is 0.39% and its NAV at yesterday’s close was $31.92, within a 52-week range of $27.52-$34.50. Year-to-date the fund is flat. The fund carries a 3-star rating from Morningstar.
The ING International Value A (NIVAX) holds assets totaling $959 million, of which about 93% are international stocks. Pharmaceuticals, energy, and telecom are most prevalent among the fund’s top holdings, with drug firm Sanofi and French energy giant Total at the top. The fund’s expense ratio is 1.62% and its NAV at yesterday’s close was $11.65, within a 52-week range of $10.42-$12.72. Year-to-date fund growth is slightly positive. The fund carries a 3-star rating from Morningstar.
The Fidelity Value Strategies (FSLSX) holds total assets of $1.1 billion, of which about 90% are North American. Dutch chemical firm LyondellBasell (ADRs) is the top holding. The fund’s expenses are 0.80% and the NAV closed yesterday at $29.22, within a 52-week range of $21.97-$30.64. Year-to-date growth is about 5.7%. The fund has a 2-star rating from Morningstar.
The Thornburg International Value I (TGVIX) holds assets totaling $30.2 billion, of which about 87% is international. Top holding is Taiwanese smartphone maker HTC Corp. and other top holdings spread among car makers, industrial firms, and drug companies. The fund’s expenses total 0.92% and the NAV closed yesterday at $29.19, in a 52-week range of $24.05-$31.63. Year-to-date is about 4%. The fund gets a 5-star rating from Morningstar.
Paul Ausick
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