Foreign and Domestic Equity Mutual Fund Flows
Chart of the Week for November 16 - November 22, 2007
In recent years, the amount of investor money going into international equity funds has been increasing. The graph above shows the flow of new money into equity funds on a year by year basis. The 2007 amount was annualized for comparison purposes. We can see that the assets moving into international equity funds have risen from $23 billion in 2003 to $109 billion in 2007, while domestic equity funds have declined from inflows of $129 billion in 2003 to outflows of $19 billion in 2007 (annualized). Part of the reason for the increased flow of investor money into international funds is the strong performance of these funds relative to other asset styles over the past few years. In 2006, international equity funds, as represented by the MSCI EAFE Index, returned 11.06% more than domestic U.S. equity funds as represented by the S&P 500 Index.
Although international equity funds have been outperforming domestic U.S. equity funds recently, no one can be certain what direction the market will take in the future, as past trends are no guarantee of future results. It is important for investors to keep a long term focus, remain diversified, and not chase performance.
*This illustration was compiled by information from outside sources. These companies are not affiliated with ICMA-RC. This information is being provided for educational purposes and is not intended to be construed as or relied upon as investment advice. ICMA-RC does not offer specific tax or legal advice. Individuals are advised to consider any new investment strategies carefully prior to implementing. Please consult both the current applicable prospectus and MAKING SOUND INVESTMENT DECISIONS: A Retirement Investment Guide carefully for a complete summary of all fees, expenses, charges, financial highlights, investment objectives, risks and performance information. Investing in mutual funds and other investment vehicles involves risk, including possible loss of the amount invested. Investors should consider the Fund's investment objectives, risks, charges and expenses before investing or sending money. The prospectus contains this and other information about the investment company. Please read the prospectus carefully before investing. All Vantagepoint Funds invested through 401 or 457 plans are held through VantageTrust. Vantagepoint Funds are distributed by ICMA-RC Services LLC, a wholly owned broker-dealer subsidiary of ICMA-RC and member FINRA/SIPC. For a current prospectus, contact ICMA-RC Services, LLC. The performance data quoted represents past performance. Past performance is no guarantee of future results. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data illustrated. For performance data current to the most recent month end, contact ICMA-RC Investor Services at 800-669-7400.
To contact ICMA-RC Services, LLC, ICMA-RC, or any of its affiliates call 800-669-7400 (TDD: 800-669-7471) or write to 777 North Capitol Street, NE, Washington, DC 20002-4240. You may also visit us on the Web at www.icmarc.org. Para asistencia en Español llame al 800-669-8216.