|Expense Ratio (net)||0.96%|
|Category||Foreign Large Blend|
|Last Cap Gain||0.00|
|Morningstar Risk Rating||High|
|Beta (3Y Monthly)||1.23|
|5y Average Return||N/A|
|Average for Category||N/A|
|Inception Date||Sep 30, 1992|
This article originally appeared in Morningstar Direct Cloud and Morningstar Office Cloud. The pace of fee cuts on passively managed funds may have slowed in some corners of the fund universe, but not at Vanguard.
For actively managed funds, that cloud has been outflows: Actively managed funds endured more than $300 billion in outflows last year, according to Morningstar's estimates. For investors, the silver lining is that a smattering of closed domestic- and foreign-stock focused Morningstar Medalists have reopened during the past couple of months.
It was a tough 2018 for equity fund investors with money in the U.S. market: The S&P 500 lost 6%, and the Nasdaq fell 4%. The MSCI EAFE Index of developed markets plunged about 14% in U.S.-dollar terms, as did the MSCI ACWI ex USA Index (which includes a hefty dose of emerging markets). A variety of concerns hurt international markets, from local political issues to dismal economic data to the global impact of U.S. policies.
Oakmark International OAKIX has reopened to new investors as outflows have accelerated since midyear in the wake of dismal performance. The strategy is on pace for its steepest calendar-year loss in absolute terms since the depths of the global financial crisis in 2008. Its more-than 22% loss for the year through Dec. 14, 2018, trailed 100% of the foreign large-blend Morningstar Category and was almost twice the 12% loss of the strategy's MSCI World ex USA Index prospectus benchmark.
At 67 and 64, respectively, Bill and Kathleen are starting to see many of their peers retire. In an effort to retire debt-free and to preserve their retirement assets for as long as possible, they plan to continue working for another five to seven years. Kathleen is the office manager for a pediatric medicine practice.
"If you're in your 30s or 40s and you think you have at least 20, 25 years until retirement, you should want to see these periodic market sell-offs, because you want to hold a mostly equity heavy portfolio at that life stage," says Morningstar director of personal finance Christine Benz. To Benz's point, the S&P 500 is up about 11% per year for the trailing five-year period. As such, investors may find that their portfolios are light on bonds and international stocks.
These members of the Kiplinger 25, the collection of our favorite no-load mutual funds, require new investors to jump some hurdles in order to buy initial shares -- but we think you should endure the hassle.