International stock mutual funds

[jIM_Ohio]

Fidelity Spartan International Index Inv
( NASDAQ:FSIIX )

Low exp ratio: 0.10%
But...

Min Initial Investment: $10,000
Min Initial Investment, IRA: $0
Min Initial Investment, AIP: $10,000
Min Subsequent Investment: $1,000
Min Subsequent Investment, IRA: $1,000
Min Subsequent Investment, AIP: $500

how are stocks chosen for the index?

[LuxLiving]

I'm with Yellow-heel, we have FSIIX. It has done extremely well by us!

I LIKEE!! LIKEE!! It has made LLFrugalis a very happy woman!!

ER 0.10%
No Transaction Fee unless you are a short-term trader.


from Fidelity's website:

NAV is $46.10 this a.m.


FSIIX: SPARTAN INTL INDEX INVESTOR CLASS

Objective
Seeks to provide investment results that correspond to the total return of foreign stock markets.

Strategy
Normally invests at least 80% of assets in common stocks included in the Morgan Stanley Capital International Europe, Australasia, Far East (MSCI EAFE) Index which represents the performance of foreign stock markets. Geode Capital Management may lend thefund's securities to earn income for the fund.

Fund Manager - Geode Capital Management



Risk
The value of the fund's domestic and foreign investments will vary from day to day in response to many factors. Stock values fluctuate in response to the activities of individual companies, and general market and economic conditions. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. You may have a gain or loss when you sell your shares. Investments in foreign securities involve risks in addition to those of U.S. investments, including increased political and economic risk, as well as exposure to currency fluctuations.

[jIM_Ohio]

Here's where my indexing knowledge tells me to stay away... how is it decided which countrie's "market index" gets weighted relative to the another countrie's "market index".

Currencies don't match (100 yen does not equall 100 pounds). And add to that at one point 100y=75p, then later it's 75y=100p...

and the more currencies you add, the more complicated this gets.

If someone could tell me how each country adds stocks to it's index, then how the indexes are weighted, it would be a big help.

thx

[LuxLiving]

I *think* what you are looking for is the G-10 or maybe not - is it the Broad index???

You are quickly wading into waters over my head...

Try here:

FRB: H.10 Release--Summary Measures, Dollar Exchange Value--March 21, 2007

or here:

http://www.federalreserve.gov/pubs/bulletin/2005/winter05_index.pdf

and then you are comparing how these indexes are weighted to how each of the mutual funds that are tracking internationally are using these indexes as to how they weight their holdings???

Talk slow for the blonde girl, okay?

[jIM_Ohio]

Your's on the right track...

if the weighting of the index equity is 10% Germany, 9% England and 15% Japan, my question is WHY?

is it because of currencies, market cap, or something else.
I then need to know how each index was made up. I'm not averse to the indexes, I just need to know how a company gets included into the index so I know what I have and what I'm missing.

I do own S&P 500 as a medium size position of my overall portfolio... but most other indexes are much grayer as far as how a company gets included into index (or a mutual fund which invests in the index).

[teddrill]

Vanguard has some great funds with super low fees.
I've had an American Century Emerging Markets (TWMIX) fund for a while that has done quite well. Above average risk and Above average return. The fees are 1.85% not as low as most Vanguard funds.

[jIM_Ohio]

I'd prefer two things from a fund

1) I need to know how it picks stocks and what it's holdings are
2) it needs to have solid return.

The expense tail will not wag the returns dog. I'm not trying to avoid expenses or minimize expenses, I am trying to find a fund which diversifies me from what I own.

BTW, I already own 1 emerging markets int'l fund (PRIDX), so I am probably looking more to int'l growth/ large cap.

[kv968]

I still say you can't go wrong by not straying from good old T Rowe and their Int'l Growth and Income Fund (TRIGX). Granted it leans towards the "value" side and couldn't be considered a "growth" fund in that aspect but it has reasonable volatility and invests in some good dividend paying stocks.