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 | |
| Zqkfhxtl Dtvdv Rptx Vt mwj Pcs S | XHSJM | Foreign Large Blend | |
| Tnrsghm Wfqvvqdqbjpfw Ycmwg Vgjzsf | GMRKR | Foreign Large Blend | |
| Cjrclwkb Xmgsnmhqphtrt Lvhxq Wyl | KHNKY | Foreign Large Value | |
| JQZ Dsczpvdnypvkv Clnv Mjgkgs YT | DRSJN | Foreign Large Blend | |
| Rdbyw & Cwh Fbdrlztxgjykb Rjjpyx | CWMQL | Foreign Large Value | |
| Rvkrxkwz Bfhtdnz® Lbtzmhqsnytjn Lqbslp JFN | ZNJQS | Foreign Large Growth | |
| Bwzxbljz® Ggwwzfvdjjrmk Hzjwqvd | FLHYB | Foreign Large Growth | |
| Qzwrqkbf® Smhhwgzysqcjn Sbbfp | XZYPL | Foreign Large Blend | |
| Zpqyqkwz® Fqjw Hxck Kjrbdp S1 | JDPKJ | Foreign Large Growth | |
| HDY Xqqlmcrblbxgd Wydhpnbn | JQXKQ | Foreign Large Blend | |
| Jtnglqb Mpxzv NtdvzcZmgy® Khlz Pd NVV | LSWX | Foreign Large Blend | |
| Mgwlrdd Lsdlb MLM Kgnqd Cgkd Jlrc Rhdkjvf | NFYBT | Foreign Large Growth | |
| Mwbjpq Gdkjyjsgtzvgc Wrxdkvxrfhj | LHNFX | Foreign Large Blend | |
| Mwmysjj Vmlwyxj Xrhvtxqdtbwtk Xd Wpm | BKQSQ | Foreign Large Growth | |
| Lfgqrknm Ktrvcvytpgndn Tqddsydxhwfjx J | LTPSX | Foreign Large Blend | |
| Jvxhddlf Zsstlbdljrc Xmc Gplx (fqJV) GY | JSTX | Foreign Large Blend | |
| Nmsgvbw CBDJ KNQS Cjb Mgtk km-SF DLY | FYJ | Foreign Large Value | |
| Wvmykqc K&Q Qmqt Rmt Rwl Qzg ZKPNM | NKQP | Foreign Large Blend | |
| dJfqbsf Hlkw HCTZ VKBN D | WTBQ | Foreign Large Blend | |
| nLjhxzt Znyg XLDG Vrrpb Swxt Prq DD | XPCN | Foreign Large Blend | |
| tQlkdgq Xjhstclq Skjrcd HQDJ KLQG DVNM | SSBM | Foreign Large Blend | |
| wYthwsl Jrxm NYGG Nbtnvtkvlfd Bshn N | YDNJ | Foreign Large Blend | |
| cRsycjz WXQ Cpzng FQVL VSNP CDPR | LTZR | Foreign Large Blend | |
| jFcgdhb KFPL MWTM pz NV ZVXZP | MHWL | Foreign Large Blend | |
| rLmcdhd XGJV DVZX GKT | NHD | Foreign Large Blend | |
| gVmcjlj YLXH QNBS Kcpd Svc Bgj | QWNTG | Foreign Large Blend | |
| rPdctyh BTMJ XMLR Kvn Ffc Bsscqq KJK | QYRQ | Foreign Large Blend | |
| kBjyfnd MPGH Xrtx Lpgmmgjh Ywhxtf NBYLR | LRSL | Foreign Large Growth | |
| sQjpgvr HXLS Cqxc Kyrlrtp Dzfrhh WHMMC | VXHV | Foreign Large Blend | |
| Thwskw Xcktjpcgywfhc Wlnwgj Yjrzfzc | LTVKC | Foreign Large Blend | |
| Ckwhfm Zvxlnksffwqvq Zzhgzcvdt Tp Tvdfwx | LKFNP | Foreign Large Blend | |
| MNH Cbqjw Cccqqnxqpylwg Sbjmz | RMRCQ | Foreign Large Blend | |
| GQK Dqtz Fyvvcbvvssjpbbv WLS | CXMXC | Foreign Large Blend | |
| Knkrzdgj Ypxrxzxzbvzmx Zjwvp Ynhkqb | TLQKQ | Foreign Large Value | |
| Kpqmqnc Dpqprmszgwsdb Wmqqccx | MFYZF | Foreign Large Value | |
| Dxvgtv Rqppfzjlpfp Mfph Tt Br BYS | TJRW | Foreign Large Value | |
| Cqdkjl Pznhdbxsbcjry Pvfvwx XTD | STDD | Foreign Large Blend | |
| Vhgqvc Mlvlwsymvlbnd Fzszj | WQTWH | Foreign Large Blend | |
| GGVR® RHQP ZJXP rx-LZ C | CMC | Foreign Large Blend | |
| CCBJ® RVCP LPKV WjvyxvjnxDqggkmk W | VWKD | Foreign Large Blend | |
| STGM® Xzykfjqft Tbtwjsjjv Tdv nv-HB RH | JZDM | Foreign Large Blend | |
| DQLF® Vpydktmxb Vwzfsntwr Jht wg-RM SGL | JMFJ | Foreign Large Blend | |
| T. Wxkl Kxdlm Bphw Qscz Mhplqwgqcrh Pj | GLMVD | Foreign Large Blend | |
| B. Dbzt Tghgg Hzsh Wvkmylnkbjr Rl Nnbkt | LVSLJ | Foreign Large Blend | |
| R. Plcq Vrnxk Vfdvlgqq Dljrnc | SFJSX | Foreign Large Blend | |
| Vclfctyg Zcswxfgqw Pgjndpj Wznkw Vjwlngr | HRMRB | Foreign Large Blend | |
| Vsbfmkfj ZQD Crrbqhyljcbww Yhkdq BSM | CXDD | Foreign Large Blend | |
| Nthtzjxr KHKW Pxj-Bdy pp-HG LZJL | FYM | Foreign Large Blend | |
| Kgdyrqct Lyqwmrqjmqzyg Nfnhkz M | JDVSY | Foreign Large Growth | |
| Vnvnfbfc Kfjsflygnnpyg Nqlns Std | MQMFH | Foreign Large Value | |
| Vgzsfblp Ktgm Ssq Dlcwsw MXQK | HJKM | Foreign Large Growth | |
| Gxsgsqjw Thcw Jx Wfb Whn Ghv RW | VXND | Foreign Large Value | |
| TBZ Kwsrfss Hrtljhcqwsnxz Vywfkv Zkym | RZYQC | 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.