Stock markets around the world have rebounded sharply in the last few weeks. Nobody knows which markets will thrive in the years ahead. But if you are looking for a single fund that will bet on them all, you’ll face three problems: Limited choice, high fees and questionable diversification.
Thousands of funds invest in the U.S. and quite a few international funds that invest everywhere else. But there aren’t that many truly global equity funds that spread their bets across the US and world markets. Lipper, Inc., lists just a few dozen funds in its mainstream “global multi-cap core” equity category.
Many are expensive. A lot come with up-front loads of 5% or more, and annual expenses of around 1.5%. This is a tough book to beat. Over time, these costs can slash your returns dramatically. Link
