It's not news that emerging markets have been hot in recent years, fueled by explosive growth rates and high commodity prices. The boom has even given us "BRIC" (referring to Brazil, Russia, India, and China), the most overused investment acronym since "TMT" (technology, media, and telecommunications).
Less covered has been the incredible rise of Europe, a region many were essentially writing off just a few years ago. The MSCI Europe Index has climbed 25% per year, on average, for the trailing three-year period. That's not too far behind the gains posted by emerging markets. Mutual funds in the Europe-stock category have been on fire, outdistancing all but a handful of other fund groups.
We've been getting an increasing number of calls about investing in Europe lately. For that reason, we thought this would be the perfect time to take a closer look at the region, the reasons behind its rally, and the best way to get Europe exposure.
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Dan Lefkovitz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.