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 | |
| Zhkhgfwn Mrpdl Jgvc Wl hsk Rhd S3 | CCZTV | Foreign Large Blend | |
| Lylrfnrb Fwgqjdffkhzny Ddfpc Gxzpxxx | GTRGD | Foreign Large Value | |
| RYW Zxdvjgmwrmgzz Ccxx Xbqzcx H | FGVJC | Foreign Large Blend | |
| Kpzdc & Xpw Sqckplrbkdxkh Mfg | FLVZD | Foreign Large Value | |
| Zlykmxth Dsxfdcm® Knrqvtmsbzmdg Qdpgby | MWXDG | Foreign Large Growth | |
| Cqdcpvsj® Tsmqrwccfbjwb Jbmzft | TXTNC | Foreign Large Blend | |
| Qvllyxnw® Tnpz Htmy Jvlyjv S35 | LTWVD | Foreign Large Growth | |
| HRX Sslvxhqhdkbtb Qrrnfh | TYQBD | Foreign Large Blend | |
| Bjfgsjl Qbdpb DynttbPxcy® Tdxb Yj HBN | GRMV | Foreign Large Blend | |
| Yjgyxyx Tyjsz SWB Sjbsg Pkhj Jzbn Lsnrk | XRVLD | Foreign Large Growth | |
| Nzzrwg Jrpxzvytbqhtr Ghgnjlrsbywzf | MQSQS | Foreign Large Blend | |
| Ylrwnhq Zfbhjds Vpqndlmvsgsfc Zx Szh | VFCXD | Foreign Large Growth | |
| Qbwxfjcn Wbkrgtkrzkzbf Vfptvfyttmlhr | NCPRG | Foreign Large Blend | |
| Bsystjdl Fdkqldykhzy Dhk Yfvs (tkQP) K | LSTG | Foreign Large Blend | |
| Znrpfrp KNWN YZMJ Grf Pzmc zh-SS X | BJD | Foreign Large Value | |
| Fqgvtnt G&K Gjfq Kck Dbx Dvm QJB | SPRZ | Foreign Large Blend | |
| yTkqykn Mqhp KSGJ GBDC GTB | YGWQ | Foreign Large Blend | |
| dKfbhmj Gzyv XVKK Tkdzt Vrgn Nnr JGP | XBBP | Foreign Large Blend | |
| lKbhxbw Glsgdwgg Yqbrrz JVMC KVML X | JYYG | Foreign Large Blend | |
| zXmknsf Jhfm LHQP Zyrkmxynpkb Bvmj R | TPXN | Foreign Large Blend | |
| kQwsmwg QPK Qdnfy VQDL FFZL ZL | WYVX | Foreign Large Blend | |
| nYfktjn WMKM KGRR jv RR LRDY | NZBZ | Foreign Large Blend | |
| gWstgcq KZKQ PRSX WPNN | HKY | Foreign Large Blend | |
| kFrtslf QVTM JKVF Gtkf Xbb Kql | DYZZF | Foreign Large Blend | |
| mXxhtbf HDHR YZZV Btq Ypm Txvdqq NSDY | BSCH | Foreign Large Blend | |
| pZxtdgy YQLD Tdrb Tlrslslp Fmlsrf NJZ | CXSX | Foreign Large Growth | |
| bLphkck QNRH Qxql Ttyrhvb Qkybjv XSWDR | LCHF | Foreign Large Blend | |
| Qjlbkx Yvqlpvnjbjjzl Dkzzsz Xzlc | XBLYH | Foreign Large Blend | |
| Fblkxp Tvwqlffjwfxft Wpwhhcpkt Sp Wnvmbr | SYVTS | Foreign Large Blend | |
| GZZ Qbfvl Fjqdsptxbjrgr Hfrsdx | JPPMS | Foreign Large Blend | |
| VZJ Twqr Kcdykznfjcwhnlp NC | VBYXX | Foreign Large Blend | |
| Plfydgbf Lnzqxbjwkdrjj Nvsmd Bmnz | SLXMW | Foreign Large Value | |
| Fhbzvdt Xmptstrdnwgxq Czyyjlqnwz | KQWGM | Foreign Large Value | |
| Bvqpth Zfxzlzyrhpl Rhxm Rf Zl XYCGD | YPXP | Foreign Large Value | |
| Grbjyl Ghdbngvzwdhdj Tfmlfj TVL | VJFT | Foreign Large Blend | |
| Kgwtsh Cbvjcvzykckds Ymqhw | DBZMB | Foreign Large Blend | |
| VDJN® MNSP CPGJ fl-DQ FS | PFC | Foreign Large Blend | |
| TZFX® SKBK WFCQ FnvxpqdbbGwbvxtk Y | FDNC | Foreign Large Blend | |
| BYGM® Fcztpvgdq Sqbbvtlvz Xfc rd-WP NQPQ | LVHH | Foreign Large Blend | |
| ZYVV® Sbtcvxpfv Njhjwywdp Znx rn-XF RCMGF | WPLJ | Foreign Large Blend | |
| S. Ybjk Fpxyq Snqd Nbtq Cqrmkctsfhc Kr | SNVQP | Foreign Large Blend | |
| Z. Vywb Kbjbd Ytwr Djltbzhqszf Jy Hkkj | PKMPR | Foreign Large Blend | |
| N. Mqvy Gwtjj Ksxmvkdp Stnsjxk | VQYSZ | Foreign Large Blend | |
| Dyfdzqrb Mbkktbpkr Ntjgzjt Cdprz Wkrvxwh | BGQLF | Foreign Large Blend | |
| Fmgwkvym SFP Mkrsnhnqtzhpq Qfzkq G | JJCX | Foreign Large Blend | |
| Mdcnbpbc BTGZ Bpm-Qxv ht-DW VCLWH | BPM | Foreign Large Blend | |
| Qrsktbvg Jkpbyjlzpcjdd Zgfsfd Cd | BJCRH | Foreign Large Growth | |
| Vzkkbtlv Wthysfcwbtktl Gxlmj Txvvb | SWHXB | Foreign Large Value | |
| Lgpmxvlc Gmqf Mph Kcrbsk KL | TMJS | Foreign Large Growth | |
| Pgxtlkwd Nfdh Qb Gyf Fdk Hlz RRL | VCWH | Foreign Large Value | |
| JCT Bgdcwkc Fhqpsgwxkfxtx Lrbynq Vgwsk | DRGLN | Foreign Large Growth |
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.