Investors' average 3% to 4% allocation is low given the rising importance of emerging markets.
Picks for globalizing a portfolio without adding a lot of volatility.
For long-term investors only: two intrepid world-bond funds and two emerging-markets bond offerings.
For a small category, the world-bond group features a confusing array of choices.
Despite their rosy returns during the recent rally, these bull-market stars posted big losses in 2008.
Concerns about Chinese growth, Russia, and global liquidity have driven the prices of several quality stocks to appropriate buying levels, says Oppenheimer manager Justin Leverenz.
A handful of quality small-cap funds have shone brighter than their peers when the market has tumbled.
When stocks have dropped, these funds tend to outperform their peers.
Short-sighted panic-selling has offered good opportunities to buy Ukraine's dollar-denominated government bonds, which are backed by solid fundamentals, says Templeton Global Bond manager Michael Hasenstab.
A past Morningstar Manager of the Year oversees this portfolio, which has fewer holdings than some of its peers but asymmetric sector weightings.