Each month, we check in on the performance of the largest Europe-domiciled stock, bond, and active exchange-traded funds.
The Morningstar Europe Index fell 0.86% during December, while the Morningstar Eurozone Core Bond Index lost 1.69%. Over the past year, the European stock market is up 4.41%, while the European bond market has fallen 2.30%.
The Morningstar US Market Index fell 1.50% during December and is up 26.31% over the past year. The Morningstar US Core Bond Index fell 0.13% last month and is up 3.17% over the past year.
In the global markets, stocks lost 1.14% during December, as measured by the Morningstar Global Markets Index. Bonds fell 0.71%, as measured by the Morningstar Global Core Bond Index. Over the past year, global stocks are up 18.90% and global bonds are are down 0.11%.
Largest Europe-Domiciled Stock ETF Performance
Out of the 10 largest Europe-domiciled stock ETFs, the top performer last year was the £31.8 billion Invesco S&P 500, which gained 27.15%. The bottom performer was the £18.9 billion iShares Core MSCI EM IMI, which gained 9.13%.
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
The £90.2 billion iShares Core S&P 500 fell 0.95% in December. The loss on the fund edged out the 1.22% loss on the average fund in the US large-cap blend equity category, leaving it in the 48th percentile for performance. Over the past year, the iShares fund rose 26.92%, while the average fund in its category rose 23.52%. The fund, which launched in May 2010, has climbed 11.50% over the past three years and gained 15.49% over the past five years.
iShares Core MSCI World UCITS ETF
• Morningstar Medalist Rating: Silver
• Morningstar Category: Global Large-Cap Blend Equity
The £76.9 billion iShares Core MSCI World fell 1.16% in December. The loss on the fund edged out the 1.28% loss on the average fund in the global large-cap blend equity category, leaving it in the 50th percentile for performance. Over the past year, the iShares fund rose 20.82%, while the average fund in its category rose 14.43%. The fund, which launched in September 2009, has climbed 9.23% over the past three years and gained 12.50% over the past five years.
Vanguard S&P 500 UCITS ETF
• Morningstar Medalist Rating: Gold
• Morningstar Category: US Large-Cap Blend Equity
In December, Vanguard S&P 500 fell 0.95%, while the average US large-cap blend equity fund lost 1.22%. The fund placed in the 48th percentile for performance. The £51.5 billion fund has climbed 26.91% over the past year, outperforming the average fund in its category, which rose 23.52%. The Vanguard fund, which launched in May 2012, has climbed 11.50% over the past three years and gained 15.49% over the past five years.
Invesco S&P 500 UCITS ETF
• Morningstar Medalist Rating: Silver
• Morningstar Category: US Large-Cap Blend Equity
In December, Invesco S&P 500 fell 0.94%, while the average US large-cap blend equity fund lost 1.22%. The fund placed in the 29th percentile for performance. The £31.8 billion fund has climbed 27.15% over the past year, outperforming the average fund in its category, which rose 23.52%. The Invesco fund, which launched in May 2010, has climbed 11.73% over the past three years and gained 15.73% over the past five years.
Vanguard FTSE All-World UCITS ETF
• Morningstar Medalist Rating: Gold
• Morningstar Category: Global Large-Cap Blend Equity
Vanguard FTSE All-World lost 0.86% in December, falling less than the average fund in the global large-cap blend equity category, which fell 1.28%. The £26.4 billion fund has gained 19.28% over the past year, while the average fund in its category is up 14.43%. The Vanguard fund, which launched in May 2012, has climbed 8.21% over the past three years and gained 11.21% over the past five years.
Largest Europe-Domiciled Bond ETF Performance
Out of the 10 largest Europe-domiciled bond ETFs, the top performer last year was the £5.6 billion iShares J.P. Morgan $ EM Bond, which gained 7.88%. The bottom performer was the £12.6 billion iShares Core € Corp Bond, which lost 0.18%.
Here’s more about the performance of the largest Europe-domiciled bond ETFs.
iShares $ Treasury Bond 0-1yr UCITS ETF
• Morningstar Medalist Rating: Silver
• Morningstar Category: USD Ultra Short-Term Bond
iShares $ Treasury Bond 0-1yr gained 1.92% in December, outperforming the average fund in the USD ultra short-term bond category, which rose 1.83%. The £16 billion fund has gained 7.10% over the past year, while the average fund in its category is up 7.17%. The iShares fund, which launched in February 2019, has climbed 6.47% over the past three years and gained 3.56% over the past five years.
iShares Core € Corp Bond UCITS ETF
• Morningstar Medalist Rating: Bronze
• Morningstar Category: EUR Corporate Bond
iShares Core € Corp Bond lost 0.89% in December, performing roughly in line with the average fund in the EUR corporate bond category, which fell 0.86%. The £12.6 billion fund has lost 0.18% over the past year, while the average fund in its category is down 0.22%. The iShares fund, which launched in March 2009, has dropped 1.40% over the past three years and lost 0.76% over the past five years.
iShares Core Global Aggregate Bond UCITS ETF
• Morningstar Medalist Rating: Bronze
• Morningstar Category: Global Diversified Bond
iShares Core Global Aggregate Bond lost 0.71% in December, falling less than the average fund in the global diversified bond category, which fell 0.93%. The £8.6 billion fund has lost 0.04% over the past year, while the average fund in its category is down 0.84%. The iShares fund, which launched in November 2017, has dropped 1.98% over the past three years and lost 0.92% over the past five years.
iShares $ Treasury Bond 1-3yr UCITS ETF
• Morningstar Medalist Rating: Neutral
• Morningstar Category: USD Government Bond - Short Term
The £8.5 billion iShares $ Treasury Bond 1-3yr rose 1.72% in December. The gain on the fund was roughly in line with the 1.66% gain on the average fund in the USD government bond - short term category, leaving it in the 10th percentile for performance. Over the past year, the iShares fund rose 5.92%, while the average fund in its category rose 5.80%. The fund, which launched in June 2006, has climbed 4.11% over the past three years and gained 2.50% over the past five years.
iShares $ Corp Bond UCITS ETF
• Morningstar Medalist Rating: Bronze
• Morningstar Category: USD Corporate Bond
iShares $ Corp Bond lost 1.18% in December, falling further than the average fund in the USD corporate bond category, which fell 0.50%. The £7.3 billion fund has gained 2.71% over the past year, while the average fund in its category is up 3.77%. The iShares fund, which launched in March 2003, has dropped 0.77% over the past three years and gained 0.87% 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 year was the £10.4 billion JPMorgan US Research Enhanced Index Equity (ESG), which gained 26.71%. The bottom performer was the £720.1 million JPMorgan EUR Ultra-Short Income, which lost 0.79%.
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
In December, JPMorgan US Research Enhanced Index Equity (ESG) fell 1.31%, while the average US large-cap blend equity fund lost 1.22%. The fund placed in the 64th percentile for performance and fell further than its benchmark, the S&P 500 Index, by 0.34 percentage points.
The £10.4 billion fund has climbed 26.71% over the past year, outperforming the average fund in its category, which rose 23.52%. The JPMorgan fund, which launched in October 2018, has climbed 11.76% over the past three years and gained 16.30% 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) lost 1.41% in December, falling further than the average fund in the global large-cap blend equity category, which fell 1.28%. The fund placed in the 60th percentile for performance and fell further than its benchmark, the MSCI World Index, by 0.25 percentage points.
The £6.8 billion fund has gained 20.44% over the past year, while the average fund in its category is up 14.43%. The JPMorgan fund, which launched in October 2018, has climbed 9.76% over the past three years and gained 13.39% 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 1.89% in December. The gain on the fund was roughly in line with the 1.83% gain on the average fund in the USD ultra short-term bond category, leaving it in the 42nd percentile for performance. The fund performed roughly in line with its benchmark, the FTSE Treasury Bill 3 Month Index.
Over the past year, the PIMCO fund rose 7.63%, while the average fund in its category rose 7.17%. The fund, which launched in February 2011, has climbed 6.28% over the past three years and gained 3.52% over the past five years.
Fidelity Sustainable Research Enhanced Emerging Markets Equity UCITS ETF
• Morningstar Medalist Rating: Bronze
• Morningstar Category: Global Emerging Markets Equity
In December, the Fidelity Sustainable Research Enhanced Emerging Markets Equity rose 0.99%, while the average global emerging markets equity fund gained 0.95%. The fund placed in the 54th percentile for performance and lagged its benchmark, the MSCI EM Index, by 0.36 percentage points.
The £1.6 billion fund has climbed 6.48% over the past year, underperforming the average fund in its category, which rose 8.23%. The Fidelity International fund, which launched in November 2020, has lost 1.13% over the past three years.
JPMorgan Europe Research Enhanced Index Equity (ESG) UCITS ETF
• Morningstar Medalist Rating: Silver
• Morningstar Category: Europe Large-Cap Blend Equity
The £1.5 billion JPMorgan Europe Research Enhanced Index Equity (ESG) fell 1.15% in December. The loss on the fund edged out the 1.22% loss on the average fund in the Europe large-cap blend equity category, leaving it in the 42nd percentile for performance. The fund fell further than its benchmark, the MSCI Europe Index, by 0.15 percentage points.
Over the past year, the JPMorgan fund rose 2.65%, while the average fund in its category rose 1.71%. The fund, which launched in October 2018, has climbed 3.99% over the past three years and gained 6.58% over the past five 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.
