The fund's portfolio managers, Fred Copper and Daisuke Nomoto, will invest in companies that they believe are attractively priced and have better growth, returns and profitability versus the fund's benchmark, the MSCI EAFE Index
REFA seeks to outperform the MSCI EAFE Index
, with an expense ratio of 42 basis points.
Following the launch of futures and options on the popular MSCI EAFE index
that represents the developed markets of Europe, Australasia and the Far East, Eurex has become the only exchange that offers futures and options on all major MSCI indexes.
Optimism on the geopolitical front and a stronger Japanese Yen helped the MSCI EAFE index
gain a return of 6.
For instance, in three out of the last four calendar years, the Standard & Poor's 500 index has topped the chief international benchmark, the MSCI EAFE Index
The blue line in the accompanying chart plots, from the end of 1999 through the first quarter of this year, an index of return of the MSCI EAFE index
(covering large companies in the markets of Europe, Asia and the Far East), while the purple line represents the Standard & Poor's (S&P) 500, and the green line at the bottom shows the correlation between their returns for rolling 24-month periods.
9 percent, and the MSCI EAFE Index
rose approximately 1.
Puts protecting against a 10 per cent drop in the iShares MSCI EAFE Index
Fund cost 5.
companies by market cap, the largest 250 Canadian companies by market cap and companies in the United Kingdom, Europe, Japan and the Asia Pacific region that are included in the MSCI EAFE index
Aggregate Bond Index (40 per cent), the MSCI EAFE Index
(18 per cent) and the MSCI Emerging Markets (Free) Index (2 per cent).
Intemational Small Index data: 1970-June 1981, 50% UK small cap stocks provided by the London Business School and 50% Japan small cap stocks procided by Normura Securities; July 1981=present, compiled by Dimensional from StyleResearch securities data; includes securities of MSCI EAFE Index
countries, market-capitalization weighted, each country capped at 50%: rebalanced semiannually.
LaBella said, "Many investors rely on passive indices like the S&P 500 for US or the MSCI EAFE Index
for International and, as a result, find themselves disappointed with the results in unstable markets.