To home in on some solid international anchors, we screened for international-stock funds (foreign large-cap categories) that Morningstar’s fund analyst team has rated Silver or Gold, meaning they are poised to outperform their peer funds over a full market cycle. These funds make solid core holdings, given that they invest in the world’s biggest companies. Depending on their strategies, they may have more or less exposure to smaller foreign firms or emerging markets, so investors may want to supplement one of these options with a Medalist fund from our emerging-markets or foreign small/mid-cap categories.
Core Foreign Funds
These top-rated funds could be solid anchors for investors’ overseas exposure.
Name
|
Ticker
|
Morningstar Category
|
Morningstar Analyst Rating
|
|---|---|---|---|
| American Beacon International Eq R5 | AAIEX | Foreign Large Value | |
| Tylfkwwb Yjjct Nbtr Js sry Djs T0 | VSQDJ | Foreign Large Blend | |
| Zhcfdwyv Bscykrswclttr Lmzdd Jkggp | BZKSF | Foreign Large Value | |
| WVN Pcmtznzlngrgf Hdxm Jphsdd | GFWFC | Foreign Large Blend | |
| Crytx & Sjn Lfxshglfqhmjc Fws | HDGWH | Foreign Large Value | |
| Dqgfklhg Ycbytbp® Vgfvwthkzdtrd Nsjtfv Y | KLYTW | Foreign Large Growth | |
| Mjlndjyf® Bywdhndwgrrkl Ztgtj | BLRKD | Foreign Large Blend | |
| Zpcqfmtk® Cgsn Ntdd Byvgqp V0 | PFMHZ | Foreign Large Growth | |
| KSZ Gjldcvlnmypkj Zxhvvrrzf | CYTMG | Foreign Large Blend | |
| Jwqfkyg Vbxpv XysdxxPyym® Vwbs Kf LMJD | RCXM | Foreign Large Blend | |
| Mthcfrk Mlcrg QLR Qjhxs Wwpv Ghrp Rkwljk | PSBJQ | Foreign Large Growth | |
| Zxhvsm Gdfygxlthqzbc Lfhshbrstwyhzbx | BGTTP | Foreign Large Blend | |
| Psdgwzv Nbkfbyc Cxtntlcvlfnmg Sx Rqgb | KQPHQ | Foreign Large Growth | |
| Vqpsmnxl Bpysvjwhzblhj Jhhzwzvycpgjn CQ | SRNQR | Foreign Large Blend | |
| Ycfzwwdz Mbfvnthjxmr Rgz Tmvq (mkVB) T | WBQW | Foreign Large Value | |
| Dmshmdn RYGB LTDV Fvw Vsnl zr-BQ R | JLK | Foreign Large Value | |
| nLfswqq Znhn SGQH JBNX BDS | ZLFR | Foreign Large Blend | |
| sNcdsfb Vyrc XSBN Vjcvm Snmx Dxq LPW | SNDD | Foreign Large Blend | |
| hMqtxjs Xkxr WWDR Zbtpybvplxg Hgqj N | LHLG | Foreign Large Blend | |
| xTrbtxq HZQ Crrxq HDWJ GTRZ CKK | MFTM | Foreign Large Blend | |
| vHbwvvz BCJV HVVT Zdgg Yyr Vbxrr | BGYBX | Foreign Large Blend | |
| rTkqztv MDPP XRGJ Pgn Bsn Ypsrmg MPH | JZFR | Foreign Large Blend | |
| tLnqsqq MZJQ Vcvq Vxsfpvvc Cgxngs LWQSF | CWNK | Foreign Large Growth | |
| hLpbdyv MGMT Mhrw Crcgvlx Lkzyfs ZXWVV | HDQF | Foreign Large Blend | |
| Frxsrw Tjmzqwkhynwfl Zqghkz Yfk | CXRPM | Foreign Large Blend | |
| Tnjpqt Fmtrcvzqqfpwf Fchymrvtk Np Wcjn | DNWGC | Foreign Large Blend | |
| NDN Zlchm Rhbcgvtqdwgmb Fnbtxw | GJYMV | Foreign Large Blend | |
| TWZ Bcgw Hmwxhljryylbjsd DJR | JMHMZ | Foreign Large Blend | |
| Ztrrjkdn Kyhqlntvlydkt Qmvzz Kbyjl | TCHHV | Foreign Large Value | |
| Yywqhwx Shwgrrxqnvnzg Krvvtgnckg | PYQSF | Foreign Large Value | |
| Tkvcxscql Bxfdlz Cmvmcmknrzcmy Zzctt T | CBJPG | Foreign Large Blend | |
| Sdgwjg Vvvmpmmfzpz Zmvy Fd Nk VSDZV | WHMC | Foreign Large Value | |
| Zkkfpg Bfnvhyfjgdxgl Hbbnqk YGS™ | SCWZ | Foreign Large Blend | |
| Gnxdnq Ddmddrtdgttpc Lkxmd | ZNBSN | Foreign Large Blend | |
| NTMD® BFVM JLDB ShsdpxqzwMrfrybh W | QLXQ | Foreign Large Blend | |
| MJBY® Vjfcyzlvh Hnfxjvrdh Rnm cv-DH LVP | QLVM | Foreign Large Blend | |
| ZCMN® Xhjxprvps Trqqkvgyd Frp sx-KJ TGYC | WRBC | Foreign Large Blend | |
| L. Jhty Spmjq Rzyd Ptyh Rqttfzsgsns Ypyf | RKPGV | Foreign Large Blend | |
| C. Rypx Yzhvp Nrqk Zdjmtkrqbqc Hx Vtbn | YYDRD | Foreign Large Blend | |
| F. Lzhh Nblwy Tyfptwfl Bwz | LRNFC | Foreign Large Blend | |
| Qtzskxst Tsvzplrcs Pzzsnyp Hjqxk Rhrtnz | ZDMPR | Foreign Large Blend | |
| Gbjjrfmw FMH Dpmsdfndvwdgg Nglqh F | TSBR | Foreign Large Blend | |
| Pxccsxjb WBGS Nht-Fnk rq-BC RZRRQ | VKB | Foreign Large Blend | |
| Hqjyvmcr Wwnngsbktngkk Sxfghv Kqckj | BSMNV | Foreign Large Growth | |
| Ckjrgqtv Kjzc Dfj Ppgqyv C | XWRD | Foreign Large Growth | |
| Rwlxblrn Mvxj Ys Rcq Mtt Zdm BCW | VYJZ | Foreign Large Value |
List Criteria
Foreign Large-Cap Stocks
These funds seek capital appreciation by investing in the stocks of big international companies, which are generally considered “core” overseas investments. Large-cap foreign stocks have market capitalizations greater than $5 billion and come in three flavors: Value, Growth, and Blend. Value is defined based on low price/book and price/cash-flow ratios relative to the MSCI EAFE Index. Growth is defined based on high price/book and price/cash-flow ratios relative to the MSCI EAFE Index. The blend style is assigned to funds where neither growth nor value characteristics predominate. These funds typically will have less than 20% of assets invested in U.S. stocks.
Gold- and Silver-Rated Funds
The Analyst Rating for Funds is based on our fund analysts’ conviction in a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.
Open to New Investment
All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.
No-Load Funds
This list includes only no-load funds. “No load” refers to a mutual fund that does not charge a fee (known as a load) for buying or selling its shares; the investor typically buys no-load funds directly from a fund company or through a fund supermarket. Load funds, on the other hand, are sold by an advisor or broker and charge a percentage fee at purchase or sale of the shares, which is meant to be compensation for the planner’s investment-selection advice. (Note: Not all advisors sell load funds. Many are compensated via a flat fee or a percentage of all assets under management.) Whether a fund charges a load or not isn’t a reflection of its underlying quality. Many load funds are also Medalists, and some load funds are available without a load through 401(k) or other retirement plans. But we’re including only no-load funds here, since this list is designed to help investors who are primarily doing their own fund-picking.
Distinct Portfolios Only
Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. Screening for “distinct portfolios only” removes all but one of these options to avoid having several share classes of the same offering cluttering the list. Morningstar normally designates the oldest share class as the distinct portfolio. In some cases, this share class may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. In those cases, investors may want to consider an “investor” share class of the same fund, though the fund expenses may be higher for those share classes.