Indexing on the Global Stage By Aviya Kushner September 7, 2000

Looking for a way to get international exposure without too much risk of
getting burned? Though there's no absolutely foolproof investment strategy,
some of the biggest names in investing are turning to international index
funds. In 1999, according to Pensions and Investments, 23% of institutional
investment cash was indexed. And if the past is any indication, small
investors eventually follow the big guns' lead.

Indexing has several advantages. By spreading assets throughout an entire
country, region, or continent, one bum deal can't hurt as much. In the
international arena, where less information, privatization efforts, and
mergers make stock-picking tougher, the numerous-bets approach of indexing
can be comforting. What's more, indexing offers lower fees and a smaller tax
hit.

There's also the guarantee of something essential - a "toe in the
water," as Steven Schoenfeld, Head of Emerging Markets Strategy at Barclays
Global Investors, says. An index investor runs a smaller risk of missing out
on the next winning company, he points out. Making sure to be included in these
potential profit opportunities is an essential factor for Schoenfeld.

That lure is part of what domestic funds offer, and in the international
arena, Schoenfeld says, the "not-missing-out" piece is more crucial. Add the
automatic diversification from any international investment and it's no
wonder insitutional managers are taking a good look at international
indexing.

Meanwhile, in the retail arena, the runaway success of domestic index
funds has prompted fund companies to expand their product lines. As fund
companies rush to introduce new index funds, they're naturally thinking
globally. Everything from a "fund of funds" international index to a
Germany-only index is now available, and more are coming soon.

But is foreign indexing the way to go? IndexFunds.com talked to three
high-profile managers to get their views. To check out all the international
index funds out there, and to hear what the brains at Barclays Global
Investors, Schwab, and Vanguard have to say, click here.

 

Fund Name	Ticker	Expense Ratio	Tot Ret YTD	Tot Ret 12 Mo	Tot Ret Annlzd 3 Yr	Tot Ret Annlzd 5 Yr	Tot Ret Annlzd 10 Yr	Net Asset Value ($ millions as of 7/31/2000)
Am Century Global Nat Rs Inv	BGRIX	0.68	1.3	-4.28	-1.01	-	-	52.5
AXP International Equity Index D	-	0.64	-	-	-	-	-	23.7*
AXP International Equity Index E	-	0.64	-	-	-	-	-	23.7*
AMIDEX35	AMDEX	-	29.46	78.92	-	-	-	12.4
AMIDEX35 A	AMDAX	2.2	24.78	-	-	-	-	1.3
Calvert World Values International Equity Fund (Class A Shares)	CWVGX	-	15.17	9.53	12.08	-	-	268
Capstone SERV Intern C	CSINX	0.39	-6.27	7.86	-	-	-	45
Deutsche EAFE Equity Idx Prm	BTAEX	0.4	-4.46	17.38	-	-	-	240
DFA Emerging Markets Value	DFEVX	1.75	-	-0.39	-	-	-	53
DFA International Value II	DIVTX	0.55	0.14	-	-	-	-	45
DFA International Value III	DFVIX	0.34	-7.92	10.22	6.27	8.97	-	242
DFA International Value IV	DFVFX	0.44	-9.59	10.65	-	-	-	127
DFA Tax-Managed International Value	DTMIX	n/a	-	8.43	-	-	-	89
Dreyfus Intl Stock Index	DIISX	0.6	-5.02	16.43	9.31	-	-	51.3
E*TRADE International Index	ETINX	0.5	-9.1	-	-	-	-	8.8
Fidelity Spartan Intl Index	FSIIX	0.36	-4.71	17	-	-	-	344.7
First American Intl Index A	FIIAX	1	-4.4	15.82	9.18	9.93	-	3.2
First American Intl Index B	FIXBX	1.75	-4.75	14.83	-	-	-	0.9
First American Intl Index Y	FIICX	0.75	-4.26	15.98	9.7	10.41	-	111.3
MainStay Inst EAFE Instl	NIEAX	0.94	-4.59	14.92	9.08	10.44	-	77.4
MainStay Inst EAFE Instl Svc	MAESX	1.19	-4.7	14.63	8.81	10.15	-	0.6
Maxim Index European	-	-	-5.58	-	-	-	-	132.4
Maxim Index Pacific	-	-	-14.17	-	-	-	-	145.2
Merrill Lynch International Index D	MDIIX	0.89	-9.89	9.17	10.66	-	-	41.7
Merrill Lynch Intl Index A	MAIIX	0.64	-4.68	16.85	14.05	-	-	77.1
MSDW Instl Active Intl Alc A	MSACX	0.8	-6.74	14.41	11.03	13.94	-	501.8
MSDW Instl Active Intl Alc B	-	1.05	-6.87	14.07	10.78	-	-	18.5
Northern Instl Intl Eq Idx A	BIEIX	0.53	-3.92	16.42	9.58	-	-	94
One Group International Equity Index A	OEIAX	1.1	-9.15	9.23	10.08	10.38	-	63.3
One Group International Equity Index B	OGEBX	1.83	-9.41	8.58	9.24	9.45	-	27.7
One Group International Equity Index C	OIICX	1.86	-9.38	8.64	-	-	-	11
One Group Intl Eqty Idx I	OIEAX	0.85	-4.42	18.09	12.91	12.91	-	761.7
Prudential Europe Index Z	PEUZX	0.6	-3.06	14.9	-	-	-	23.6
Prudential Pacific Index Z	PPIZX	0.6	-6.84	20.78	-	-	-	32.7
Schwab International Idx Inv	SWINX	0.58	-5.73	20.36	11.49	13.08	-	630.8
Schwab International Idx Sel	SWISX	0.47	-5.73	20.45	11.6	-	-	678.7
STI Classic International Equity Index	SIIFX	2.11	-9.89	6.79	12.07	11.05	-	6
STI Classic International Equity Index Investor	SIIIX	1.46	-9.6	7.42	12.79	11.77	-	4.3
STI Classic Intl Eqty Idx Tr	SIEIX	1.06	-9.37	7.91	13.25	12.22	-	330
Vanguard Emerging Market Stock Index	VEIEX	0.58	-9.21	10.83	-3.76	3.07	-	1102.4
Vanguard European Stock Idx	VEURX	0.29	-2.61	15.76	16.53	18.8	13.22	5943.8
Vanguard Pacific Stk Idx	VPACX	0.37	-5.81	22.21	1.52	2.5	2.48	2420.3
Vanguard Tax-Managed Intern	VTMGX	0.35	-4.18	-	-	-	-	186.5
Vanguard Total International Stock Index	VGTSX	NA	4.85	5.95	5.33	6.43	7.65	2870.4
Vantagepoint Overseas Equity Index	VPOIX	0.7	5.18	15.77	-	-	-	48.8
Walden/BBT Intl Social Idx	WISIX	-	-5.75	-	-	-	-	61.6

 

Fund Name	Ticker	Expense Ratio	Tot Ret YTD	Tot Ret 12 Mo	Tot Ret Annlzd 3 Yr	Tot Ret Annlzd 5 Yr	Tot Ret Annlzd 10 Yr	Net Asset Value ($ millions as of 7/21/00)
iShares MSCI EMU	EZU	0.99	-0.25	-	-	-	-	19.05
iShares S&P Europe 350 Index Fund	IEV	0.60	-5.06	-	-	-	-	-
iShares MSCI Austria (formerly WEBS)	EWO	1.33	-8.19	-12.13	-8.75	-	-	64.73
iShares MSCI Belgium (formerly WEBS)	EWK	1.04	-14.21	-9.96	3.29	-	-	10.96
iShares MSCI Brazil	EWZ	0.99	3.75	-	-	-	-	13.67
iShares MSCI Canada (formerly WEBS)	EWC	1.14	22.97	51.93	17.06	-	-	35.25
iShares S&P/TSE 60 (Canada blue chip) Index Fund	IKC	0.50	22.51	-	-	-	-	9.70
iShares MSCI France (formerly WEBS)	EWQ	1.18	3.84	28.14	23.2	-	-	95.87
iShares MSCI Germany (formerly WEBS)	EWG	1.08	-7.49	19.99	12.46	-	-	186.40
iShares MSCI Hong Kong (formerly WEBS)	EWH	1.09	-6.53	11.39	-5.07	-	-	82.81
iShares MSCI Italy (formerly WEBS)	EWI	1.02	-0.52	17.34	20.56	-	-	74.87
iShares MSCI Japan (formerly WEBS)	EWJ	1.04	-16.84	0.73	-0.51	-	-	808.14
iShares MSCI Malaysia (Free) (formerly WEBS)	EWM	1.09	0.17	7.77	-16.81	-	-	105.87
iShares MSCI Mexico (Free) (formerly WEBS)	EWW	1.34	-8.5	18.83	2.12	-	-	37.58
iShares MSCI Netherlands (formerly WEBS)	EWN	1.12	-4.91	3.4	6.09	-	-	26.73
iShares MSCI Singapore (Free) (formerly WEBS)	EWS	1.08	-19.12	-6.64	-10.1	-	-	96.06
iShares MSCI South Korea	EWY	0.99	-2.9	-	-	-	-	43.28
iShares MSCI Spain (formerly WEBS)	EWP	1.11	-9.18	2	11.71	-	-	20.73
iShares MSCI Sweden (formerly WEBS)	EWD	1.17	2.63	39.85	20.6	-	-	25.94
iShares MSCI Switzerland (formerly WEBS)	EWL	1.15	-0.06	4.43	5.82	-	-	41.99
iShares MSCI Taiwan	EWT	0.99	-2.74	-	-	-	-	32.17
iShares MSCI United Kingdom (formerly WEBS)	EWU	1.03	-10.93	-4.26	7.91	-	-	145.33