Foreign Index Beaters
In part two of our series we look at foreign large-cap funds that have outperformed a proxy for the non-U.S. stock market.
In last week's Five-Star Investor, we launched a series on mutual funds that have beaten their respective indexes over the medium term (five years) and long term (10 years). Our first installment looked at domestic mid-cap funds that outpaced the Russell Midcap Index. This week we turn our sights overseas to look at foreign large-cap funds that have outperformed.
Benchmarking foreign funds can be tricky in that it requires not just consideration of market cap and investing style allocation, but market type, as well. After all, whether a company hails from a developed or emerging market is not an issue one has to deal with when benchmarking domestic stock funds. The issue of benchmarking foreign stock funds has been in the news lately with Vanguard's announcement that it is switching benchmarks for 22 of its funds from MSCI indexes to indexes from FTSE and CRSP. You can see an interview with Vanguard senior exchange-traded fund strategist Joel Dickson about these changes here.
Adam Zoll does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.