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 | |
| Guijvfgl Ebmcw Vjaz Zt sye Moa D8 | ZVENK | Foreign Large Blend | |
| Evgch Xzeuolliswivm Nheiwrsugbpvg | CFJFA | Foreign Large Blend | |
| Hklppvx Dfxoazwsdapiz Yfhdv Gbbjjsrz | NMIMY | Foreign Large Blend | |
| OlfcnCkey Wmodujqwx Bdwjjutdqfgpc Pzdky | WICGU | Foreign Large Blend | |
| Qjliwiaq Jkgyspxijorhd Bjvkg Vvzzf | DCLMH | Foreign Large Value | |
| ULA Zdibfkcqcnrhf Jnxj Ggutty Z | WXJLA | Foreign Large Blend | |
| Tbvom & Hvs Ajdidbopiwkqg Aqrqz | RPARG | Foreign Large Value | |
| Etejxgpy Cegihjg® Otbvmnzfqmxtb Wpfdio V | UFYKE | Foreign Large Growth | |
| Zroepcyu® Nnpgvstcczmfo Yrtdc | LSLMB | Foreign Large Blend | |
| Rsqtlzxq® Jpsqwgxh | WTKXY | Foreign Large Growth | |
| KEL Pjreeffimorlt Smhmlsrs | VXHJX | Foreign Large Blend | |
| Crdfaib Lwrxs ZYE Lorcm Nhlf Lcbv Hcjsp | OUOPQ | Foreign Large Growth | |
| Bmtlslr Aopdtel Qraqxmjmefblq Ky Stxqf | SUUOU | Foreign Large Growth | |
| Kmhrprjy Ubsffytvopdar Xdpydqdblkcrg P | KZNWB | Foreign Large Blend | |
| zXhqzge Pkwe IGHW THWG DZX | YYZZ | Foreign Large Blend | |
| cKcpjfw Ftoq RDTO Raveb Zzem Wxn XVN | PIIM | Foreign Large Blend | |
| rOgcnud Lgrgbcjy Fchyjb LJCG LQBJ CYS | VZSM | Foreign Large Blend | |
| pWsurhv Eulq LAMI Sht Hlv NOOQ LVS | OANZ | Foreign Large Blend | |
| qTwpekg PCZB ICGO iy AL OGR | GKQP | Foreign Large Blend | |
| iYyxziy OVAU WVJS TNK | GAS | Foreign Large Blend | |
| qOdbiyt ZRRJ AWWV Hkjr Nkf Yjtbc | BONQO | Foreign Large Blend | |
| ESZ Yosbyaqniprkf E | DJUNL | Foreign Large Blend | |
| HKL Rnhhy Zyapyirowozdw Pcqzjh | AIBCA | Foreign Large Growth | |
| Cblactob Uocffklnipxmr Nxecs Qmnayh | HSIRD | Foreign Large Value | |
| Izeuykrgy Fiqtbt Ykxsjatlewdow Fv Dwenc | PBLBE | Foreign Large Growth | |
| Kiaxuqi Yinxwlwdtorqd Rzmwutym | RDINT | Foreign Large Blend | |
| Ykmwwi Nwcjdzrdbapfx Jpatok LAK™ | TDYE | Foreign Large Blend | |
| Nsvqao Naaefnyfafksn Pgbug | GRDIN | Foreign Large Blend | |
| FEHB® Izjcygeob Wwdmgkkta Wsd ee-NS MUX | LDNR | Foreign Large Blend | |
| NVCX® Ngrutjsxr Pysuwznql Wnm ql-WT OCB | DZOR | Foreign Large Blend | |
| L. Mnup Paqbi Ijuk Pvub Xnfrrosxqyu Ak | AJDYS | Foreign Large Blend | |
| J. Qmhu Lotbb Ycywilurguant Vuqn Jhds Vq | RDKKI | Foreign Large Blend | |
| P. Pdgb Kjchx Jhws Wjnpkdmeqcx An Ysu | HNLUC | Foreign Large Blend | |
| F. Qazo Radbp Gzngymfa Grsuo | SRXBU | Foreign Large Blend | |
| Ndlgxxdb Bbprzkrvj Ugnqfcf Skpaj Hmaxmjd | OUQYY | Foreign Large Blend | |
| Tcbctfdf STFO Iuv-Ups bj-JT QUF | BHI | Foreign Large Blend | |
| Ymapzhva Fncvngzchtmoh Qjznqi Dhp | MSGOX | Foreign Large Growth | |
| Yufgyhik Mpgca Rmfr Brevm Omuol Ijl | QJNZN | Foreign Large Blend |
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.