Each month, we check in on the performance of the largest Europe-domiciled stock, bond, and active exchange-traded funds.
The Morningstar Europe Index rose 7.45% during January, while the Morningstar Eurozone Core Bond Index gained 1.22%. Over the past year, the European stock market is up 12.39%, while the European bond market has risen 0.86%.
The Morningstar US Market Index rose 3.95% during January and is up 29.49% over the past year. The Morningstar US Core Bond Index rose 1.35% last month and is up 4.63% over the past year.
In the global markets, stocks gained 4.07% during January, as measured by the Morningstar Global Markets Index. Bonds rose 1.38%, as measured by the Morningstar Global Core Bond Index. Over the past year, global stocks are up 23.15% and global bonds are are up 2.53%.
Largest Europe-Domiciled Stock ETF Performance
Out of the 10 largest Europe-domiciled stock ETFs, the top performer last month was the £79.6 billion iShares Core MSCI World, which gained 4.35%. The bottom performer was the £19 billion iShares Core MSCI EM IMI, which gained 1.79%.
Here’s more about the performance of the largest Europe-domiciled stock ETFs.
iShares Core S&P 500 UCITS ETF
• Morningstar Medalist Rating: Gold
• Morningstar Category: US Large-Cap Blend Equity
In January, iShares Core S&P 500 rose 3.58%, while the average US large-cap blend equity fund gained 4.08%. The fund placed in the 70th percentile for performance. The £92.3 billion fund has climbed 29.18% over the past 12 months, outperforming the average fund in its category, which rose 25.66%. The iShares fund, which launched in May 2010, has climbed 14.48% over the past three years and gained 16.20% over the past five years.
iShares Core MSCI World UCITS ETF
• Morningstar Medalist Rating: Silver
• Morningstar Category: Global Large-Cap Blend Equity
In January, iShares Core MSCI World rose 4.35%, while the average global large-cap blend equity fund gained 4.58%. The fund placed in the 57th percentile for performance. The £79.6 billion fund has climbed 24.44% over the past 12 months, outperforming the average fund in its category, which rose 18.28%. The iShares fund, which launched in September 2009, has climbed 12.45% over the past three years and gained 13.48% over the past five years.
Vanguard S&P 500 UCITS ETF
• Morningstar Medalist Rating: Gold
• Morningstar Category: US Large-Cap Blend Equity
The £53.4 billion Vanguard S&P 500 rose 3.58% in January. The gain on the fund was shy of the 4.08% gain on the average fund in the US large-cap blend equity category, leaving it in the 71st percentile for performance. Over the past 12 months, the Vanguard fund rose 29.17%, while the average fund in its category rose 25.66%. The fund, which launched in May 2012, has climbed 14.48% over the past three years and gained 16.20% over the past five years.
Invesco S&P 500 UCITS ETF
• Morningstar Medalist Rating: Silver
• Morningstar Category: US Large-Cap Blend Equity
In January, Invesco S&P 500 rose 3.59%, while the average US large-cap blend equity fund gained 4.08%. The fund placed in the 43rd percentile for performance. The £32 billion fund has climbed 29.41% over the past 12 months, outperforming the average fund in its category, which rose 25.66%. The Invesco fund, which launched in May 2010, has climbed 14.71% over the past three years and gained 16.45% over the past five years.
Vanguard FTSE All-World UCITS ETF
• Morningstar Medalist Rating: Gold
• Morningstar Category: Global Large-Cap Blend Equity
In January, Vanguard FTSE All-World rose 4.14%, while the average global large-cap blend equity fund gained 4.58%. The fund placed in the 67th percentile for performance. The £27.5 billion fund has climbed 23.37% over the past 12 months, outperforming the average fund in its category, which rose 18.28%. The Vanguard fund, which launched in May 2012, has climbed 11.14% over the past three years and gained 12.26% over the past five years.
Largest Europe-Domiciled Bond ETF Performance
Out of the 10 largest Europe-domiciled bond ETFs, the top performer last month was the £6.1 billion iShares € High Yield Corp Bond, which gained 1.85%. The bottom performer was the £16.6 billion iShares $ Treasury Bond 0-1yr, which gained 1.16%.
Here’s more about the performance of the largest Europe-domiciled bond ETFs.
iShares $ Treasury Bond 0-1yr UCITS ETF
• Morningstar Medalist Rating: Neutral
• Morningstar Category: USD Ultra Short-Term Bond
iShares $ Treasury Bond 0-1yr gained 1.16% in January, performing roughly in line with the average fund in the USD ultra short-term bond category, which rose 1.17%. The £16.6 billion fund has gained 7.78% over the past 12 months, while the average fund in its category is up 7.83%. The iShares fund, which launched in February 2019, has climbed 6.56% over the past three years and gained 3.67% over the past five years.
iShares Core € Corp Bond UCITS ETF
• Morningstar Medalist Rating: Bronze
• Morningstar Category: EUR Corporate Bond
iShares Core € Corp Bond gained 1.65% in January, outperforming the average fund in the EUR corporate bond category, which rose 1.33%. The £11.8 billion fund has gained 2.96% over the past 12 months, while the average fund in its category is up 2.64%. The iShares fund, which launched in March 2009, has dropped 0.25% over the past three years and lost 0.50% over the past five years.
iShares $ Treasury Bond 1-3yr UCITS ETF
• Morningstar Medalist Rating: Neutral
• Morningstar Category: USD Government Bond - Short Term
In January, iShares $ Treasury Bond 1-3yr rose 1.25%, while the average USD government bond - short term fund gained 1.14%. The fund placed in the fourth percentile for performance. The £8.6 billion fund has climbed 6.73% over the past 12 months, performing roughly in line with the average fund in its category, which rose 6.51%. The iShares fund, which launched in June 2006, has climbed 4.47% over the past three years and gained 2.54% over the past five years.
iShares Core Global Aggregate Bond UCITS ETF
• Morningstar Medalist Rating: Bronze
• Morningstar Category: Global Diversified Bond
In January, iShares Core Global Aggregate Bond rose 1.38%, while the average global diversified bond fund gained 1.40%. The fund placed in the 58th percentile for performance. The £8.6 billion fund has climbed 2.66% over the past 12 months, outperforming the average fund in its category, which rose 1.88%. The iShares fund, which launched in November 2017, has dropped 1.23% over the past three years and lost 1.02% over the past five years.
iShares $ Corp Bond UCITS ETF
• Morningstar Medalist Rating: Bronze
• Morningstar Category: USD Corporate Bond
The £6.8 billion iShares $ Corp Bond rose 1.33% in January. The gain on the fund was shy of the 1.41% gain on the average fund in the USD corporate bond category, leaving it in the 59th percentile for performance. Over the past 12 months, the iShares fund rose 4.21%, while the average fund in its category rose 5.13%. The fund, which launched in March 2003, has climbed 0.66% over the past three years and gained 0.52% over the past five years.
Largest Europe-Domiciled Active ETF Performance
While passive ETFs have portfolios where holdings are designed to track the performance of an index, active ETFs are managed by portfolio managers who make the decisions about which investments to own. Like index-tracking ETFs, active ETFs trade on an exchange and are typically lower-cost and more tax-efficient than traditional actively managed mutual funds.
Out of the 10 largest Europe-domiciled active ETFs, the top performer last month was the £1.7 billion JPMorgan Europe Research Enhanced Index Equity (ESG), which gained 7.90%. The bottom performer was the £1.7 billion PIMCO US Dollar Short Maturity, which gained 1.21%.
Here’s more about the performance of the largest Europe-domiciled active ETFs.
JPMorgan US Research Enhanced Index Equity (ESG) UCITS ETF
• Morningstar Medalist Rating: None
• Morningstar Category: US Large-Cap Blend Equity
The £10.2 billion JPMorgan US Research Enhanced Index Equity (ESG) rose 3.03% in January. The gain on the fund was shy of the 4.08% gain on the average fund in the US large-cap blend equity category, leaving it in the 89th percentile for performance. The fund lagged its benchmark, the S&P 500 Index, by 0.54 percentage points.
Over the past 12 months, the JPMorgan fund rose 28.03%, while the average fund in its category rose 25.66%. The fund, which launched in October 2018, has climbed 14.49% over the past three years and gained 16.88% over the past five years.
JPMorgan Global Research Enhanced Index Equity (ESG) UCITS ETF
• Morningstar Medalist Rating: Silver
• Morningstar Category: Global Large-Cap Blend Equity
JPMorgan Global Research Enhanced Index Equity (ESG) gained 3.87% in January, underperforming the average fund in the global large-cap blend equity category, which rose 4.58%. The fund placed in the 77th percentile for performance and lagged its benchmark, the MSCI World Index, by 0.48 percentage points.
The £6.9 billion fund has gained 23.24% over the past 12 months, while the average fund in its category is up 18.28%. The JPMorgan fund, which launched in October 2018, has climbed 12.77% over the past three years and gained 14.30% over the past five years.
PIMCO US Dollar Short Maturity UCITS ETF
• Morningstar Medalist Rating: Gold
• Morningstar Category: USD Ultra Short-Term Bond
The £1.7 billion PIMCO US Dollar Short Maturity rose 1.21% in January. The gain on the fund was roughly in line with the 1.17% gain on the average fund in the USD ultra short-term bond category, leaving it in the 27th percentile for performance. The fund performed roughly in line with its benchmark, the FTSE Treasury Bill 3 Month Index.
Over the past 12 months, the PIMCO fund rose 8.20%, while the average fund in its category rose 7.83%. The fund, which launched in February 2011, has climbed 6.46% over the past three years and gained 3.59% over the past five years.
JPMorgan Europe Research Enhanced Index Equity (ESG) UCITS ETF
• Morningstar Medalist Rating: Silver
• Morningstar Category: Europe Large-Cap Blend Equity
The £1.7 billion JPMorgan Europe Research Enhanced Index Equity (ESG) rose 7.90% in January. The gain on the fund beat the 7.00% gain on the average fund in the Europe large-cap blend equity category, leaving it in the 19th percentile for performance. The fund performed roughly in line with its benchmark, the MSCI Europe Index.
Over the past 12 months, the JPMorgan fund rose 10.66%, while the average fund in its category rose 9.10%. The fund, which launched in October 2018, has climbed 8.16% over the past three years and gained 8.67% over the past five years.
Fidelity Sustainable Research Enhanced Emerging Markets Equity UCITS ETF
• Morningstar Medalist Rating: Bronze
• Morningstar Category: Global Emerging Markets Equity
Fidelity Sustainable Research Enhanced Emerging Markets Equity gained 2.27% in January, performing roughly in line with the average fund in the global emerging markets equity category, which rose 2.38%. The fund placed in the 55th percentile for performance and lagged its benchmark, the MSCI EM Index, by 0.33 percentage points.
The £1.6 billion fund has gained 13.72% over the past 12 months, while the average fund in its category is up 15.04%. The Fidelity International fund, which launched in November 2020, has lost 0.34% over the past three years.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
