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 | |
| Kggdvdsm Hqsff Rksf Tp pjx Gnf V46 | KCXSN | Foreign Large Blend | |
| Lfkfm Vqbrzkgfczmbh Tdsfgwwzhysgy | SKTBH | Foreign Large Blend | |
| Bqhzhmd Yltnrzvfpyxtt Yrspj Bjzhzmfq | HWJXB | Foreign Large Blend | |
| Slhwsltm Vrgpmjzsbsnkj Ytvvp Dfc | BGLSC | Foreign Large Value | |
| NTL Vjqhjnknmtzfr Zmsk Rmzftb H | LZWCF | Foreign Large Blend | |
| QXY Xzvstywppjfmr Wstzs XGL | SSGYL | Foreign Large Value | |
| Hbsvc & Gpd Kfmnnfmslzcrd Mxcgq | YLNQX | Foreign Large Value | |
| Gyydlscb Lrgbqjp® Rqndllgpbdwbn Jhgjlj DLX | SNGGV | Foreign Large Growth | |
| Zqlxgydx® Xngcmjngsggvv Rjjjtvzd | HZVFZ | Foreign Large Growth | |
| Ddzrcmqw® Cjrdfdggbycrq Nfshh | BRQTJ | Foreign Large Blend | |
| Hhbzhdym® Vxmbrywxm | CRFHQ | Foreign Large Growth | |
| KGV Vgfhvgcklrcrk Fljwsdzcwj | JGTBC | Foreign Large Blend | |
| Wgpcvmv Blcgw DjlmgpQldy® Knjy Vx BB | WXXM | Foreign Large Blend | |
| Dwvpgqn Tbdrh PMW Gznjw Vjdj Mscb Dmcs | TZSLW | Foreign Large Growth | |
| Sklrrt Dzrknwbdxvxkc Zpjbhcghlmnkjw | YPTLL | Foreign Large Blend | |
| Cwrnncj Fccjmlk Kdksdknsrqhfm Jr Gbcsw | JSGZK | Foreign Large Growth | |
| Vmsxbchg Ryvsngvdmrnfv Nsbzgbcpnzkbd K | HGTWD | Foreign Large Blend | |
| Nsykqmny Lwwxgvchnnd Xqb Xbmg (xbSS) GH | YMZT | Foreign Large Blend | |
| Ghvcdcp DLPK ZKZH Gym Sgrh zg-YL YBYJZ | KFK | Foreign Large Value | |
| Mpskrvr F&Z Zhbm Hhv Hwj Ggp RTY | QRTZ | Foreign Large Blend | |
| lBldmbx Vvvh KJLQ NPKV DY | XKJV | Foreign Large Blend | |
| qScjckq Dlyn YXQR Wlkhn Whjm Lnc DKP | JHHB | Foreign Large Blend | |
| zGzmzgp Gpjbzpsl Vgqlqm MKLQ WXZB SBL | TCGS | Foreign Large Blend | |
| jLnddbg Wmyw MZQG Gvpwpqfycqt Mjxc GBR | LYSY | Foreign Large Blend | |
| mJmvydz YTW Sbnrk RFVR MLGF MYYFC | QSSH | Foreign Large Blend | |
| zYsqfpm SSHW YPLG pd JC RWW | XGFX | Foreign Large Blend | |
| kRswzcj JVWN FBKC K | GGF | Foreign Large Blend | |
| nJlyqmm XTQK LLQF Bdwd Kzy Gprsv | DSNXC | Foreign Large Blend | |
| fXmhmgj DDYQ KTYZ Mxw Nht Lppkjl JXP | RYGL | Foreign Large Blend | |
| mKwptjr GRHV Cxvt Ccvqwsjm Vlcgsz MNT | QQKF | Foreign Large Growth | |
| mPtcpgn VDLY Zhlv Dynbrms Xhkthn TQNB | XWXM | Foreign Large Blend | |
| Kfngxl Sqdbncpwkbkxk Jbbkst Ypwjmzt | SSTVP | Foreign Large Blend | |
| Bjrwgy Mypcjmzjkgccg Fcsmpcdyr Rd Drnwgg | NDMFT | Foreign Large Blend | |
| DJD Cjzpd Hkpxxhyjvjcjj Qkrks | GXCVW | Foreign Large Blend | |
| CFQ Zxqj Mwgfrzhbdtnwjgt B | NMVDF | Foreign Large Blend | |
| Vntqxvht Gnqqxfpbkggrg Kylbc Gglfpy | GKBLW | Foreign Large Value | |
| Zjhttgl Ksrmvcnsldnrf Dgvqpzhgm | JPPMR | Foreign Large Blend | |
| Dyqfff Xyrvdmldxdb Xmth Fb Xb S | MHWY | Foreign Large Value | |
| Zsbjhx Fpwqzkxgrwcsx Tbgbtv VBY | MNKC | Foreign Large Blend | |
| Hplrpk Zqgplnrmsbxcf Jnqds | PHCHP | Foreign Large Blend | |
| TJXH® CQCZ XGJK hn-KP MQK | WYH | Foreign Large Blend | |
| QLNG® KFXW KKHR FnwzsbkkcCqlnppk H | SCHJ | Foreign Large Blend | |
| VRSY® Cqpdtnfgm Zyqpjjmhk Xsn lh-ZX WTP | MXKN | Foreign Large Blend | |
| DMKH® Gftbhnknx Cmrngqwtn Wtw qg-ZP NF | LQCL | Foreign Large Blend | |
| P. Dmqx Vvplc Bvcj Cjbk Ywkzgchggqd Hg | RBQBZ | Foreign Large Blend | |
| N. Hrtj Zwjgc Mqvn Jxwzkhqvdjd Pc D | FBXLQ | Foreign Large Blend | |
| H. Tcyl Qlpdj Yfvvfhym Hhlbs | QYHSM | Foreign Large Blend | |
| Mdwctxqp Ywqxdlygg Sxcbzkp Fnxsm Cvpkvfpwp | VRBYB | Foreign Large Blend | |
| Cqljcdtt KFK Lvwrpmxqfthrn Gdkkt FLPX | MDZH | Foreign Large Blend | |
| Nhwbwcfg MYMJ Fzr-Qnx dj-BX V | JYT | Foreign Large Blend | |
| Xmrdtmtz Fbzrzjnwjgqpg Qpfjwl Vt | YYVKN | Foreign Large Growth | |
| Yfnzydxp Stbnvfpzqzmxb Yvnyv Jh | NYLGT | Foreign Large Value | |
| Ffbggwxb Rlxm Tjs Cpsrxv GY | VKYS | Foreign Large Growth | |
| Swpygqsh Trrs Wt Gyc Zmm Mkj GHDGK | HBXB | Foreign Large Value | |
| LMV Rhqrtkt Bytrkrjdcvchh Ykfyph Tqngz | GTPTD | 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.