AAIEX - American Beacon Intl Equity Instl

Don't let mutual funds siphon away your returns.
Get our FREE Report: "Index Funds and ETFs – A Smarter Way To Invest"
Your Mutual Fund

American Beacon Intl Equity Instl (AAIEX)
Expense Ratio: 0.71%
Expected Lifetime Fees: $21,790.09

The American Beacon Intl Equity Instl fund (AAIEX) is a Foreign Large Value fund started on 08/7/1991 and has $1.20 billion in assets under management. The current manager has been running American Beacon Intl Equity Instl since 01/23/2002. The fund is rated by Morningstar. This fund does not charge 12b-1 fees.

MarketRiders Prefers The Following ETF

iShares MSCI EAFE Value Index (EFV)
Expense Ratio: 0.40%
Expected Lifetime Fees: $12,680.81

The iShares MSCI EAFE Value Index (EFV) is an Exchange Traded Fund. It is a "basket" of securities that index the Foreign Large Value investment strategy and is an alternative to a Foreign Large Value mutual fund. Fees are very low compared to a comparable mutual fund like American Beacon Intl Equity Instl because computers automatically manage the stocks.

The Following Foreign Large Value Funds Have Lower Fees Than American Beacon Intl Equity Instl (AAIEX). Why are these metrics important?
Mutual Fund Name Ticker Symbol Turnover Assets (M) Annual Fees
American Beacon Intl Equity AMR AAIAX 33.0% 1,200 0.46%
DFA International Core Equity I DFIEX 3.0% 5,300 0.40%
DFA International Value I DFIVX 9.0% 4,800 0.45%
DFA International Value III DFVIX 9.0% 1,100 0.26%
DFA Tax-Managed International Value DTMIX 16.0% 1,700 0.55%
Schwab Fdmtl Intl Lg Co Idx SFNNX 35.0% 345 0.35%
Vanguard International Value Inv VTRIX 39.0% 5,800 0.39%

Search for a mutual fund by symbol or name:

Why Are These Metrics Important?

Turnover represents how much of a mutual fund's holdings are changed over the course of a year through buying and selling. Active mutual funds have an average turnover rate of about 85%, meaning that funds are turning over nearly all of their holdings every year. A high turnover means you could make lower returns because: 1) buying and selling stocks costs money through commissions and spreads and 2) the fund will distribute yearly capital gains which increases your taxes. Look for funds with turnover rates below 50%. For comparison, ETF turnover rates average around 10% or lower.

Generally, smaller funds do better than larger ones. The more assets in a mutual fund, the lower the chance that it will beat its index. Managers outperform an index by choosing stocks that are undervalued. In order to find these undervalued stocks, the manager has to know more than his competitors to develop an "edge." There are only a finite number of stocks a mutual fund manager can reasonably analyze and actively track to gain such a competitive edge. When the fund has more assets, the manager must analyze large companies because he needs to take larger positions. Large companies are more efficiently priced in the market and it becomes increasingly difficult to get an edge.