Written by: Bryan Sajjadi, Seth Marks, Burr Clark and Vino Ravichandran
Fidelity research suggests active international allocations have topped index funds over time.
Key Takeaways
- Many international equity investors have continued to prefer index-based exposures, even though Fidelity research concludes that active approaches in international equity markets have topped the performance of index funds over time.
- Active managers can use their expertise regarding local laws and regulations and the competitive environment to avoid problematic international securities and segments.
- The economic backdrop for inflation, geopolitics, and monetary policy could result in a broader range of potential winners and losers across multiple investment categories in the years to come, implying there may be greater opportunities for active managers across regions and countries.
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Read more: Industry Leading Funds and Returns | Fidelity Institutional
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