Skip to Content
Our Picks

For Those Daring to Brave Europe, Try These Funds

These foreign large-cap value funds overweight the continent and have risen above their peers.

Mentioned: , , , , , , ,

The eyes of the financial world are on Europe these days--its capitals and banks, to be precise. The continent continues to struggle to control debt problems that have led to steep government spending cuts, high unemployment rates, social unrest, and credit rating downgrades for some of its biggest economies, including France, Italy, and Spain. And despite a new bailout agreement designed to prevent Greece from defaulting, risks remain.

Not exactly the sort of environment that screams "economic boom," perhaps, but some investors might consider Europe's dark days an invitation to buy distressed stocks. True, European stocks have already staged quite a comeback so far in 2012: The MSCI EAFE index, which tracks stocks in developed markets in Europe, Australasia, and the Far East, is up more than 11% year to date, and the MSCI Europe Index, which tracks just European stocks, has gained a bit more than that. Nonetheless, both indexes are down more than 7% for the past-12-month period. As of Feb. 20,  Morningstar's ETF Valuation Quickrank showed that the stocks in BLDRS Europe 100 ADR Index (ADRU) are trading at a discount of roughly 15% to our analysts' estimates of their fair value, a bigger discount than most ETFs that focus on U.S. equities.  

Adam Zoll does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.