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Fund Spy

Will Your Foreign Fund Still Be Around in 2018?

The odds are worse if it targets just one country or region.

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When you buy a fund, you assume it will be around for many years. After all, most likely you're making a long-term commitment. But how can you follow the standard advice to own funds over the long term--rather than moving in and out in an attempt to time the market--if the fund disappears on you?

Unfortunately, that sort of thing does happen, and it's far more common in single-country and regional stock fund groups than in other overseas categories. While the focus here is on open-end mutual funds, single-country and regional exchange-traded funds have experienced the same trend: more liquidations proportional to the number of offerings available. 

Karin Anderson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.