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Foreign Funds That Blaze Their Own Trails

We take a look at foreign large-blend funds that bear little resemblance to the benchmark MSCI EAFE index.

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In recent weeks we've looked at the active share metric--a useful measure of the degree to which a fund's holdings diverge from those of its benchmark--as it applies to the domestic large-blend and small-blend categories. 

It came as no surprise to find that active share tends to be higher among small-blend funds than among large-blend funds because the number of small-cap stocks is far greater than the number of large caps, allowing small-cap fund managers to differentiate their portfolios more easily than their large-cap counterparts can. (To review, the active share figure corresponds to the degree to which a fund's portfolio overlaps with that of a benchmark, so an active share rating of 0 represents complete overlap while 100 represents no overlap.)

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

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