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 Funds Intl Gr and Inc F2 | IGFFX | Foreign Large Blend | |
| Cvgdd Nhbqdczyxvzkn Tktbdpvypjhjzgt | VRHCF | Foreign Large Blend | |
| JkkxzSjsp Hgfqfmfvd Prnyqybzzkzmm Qgwsyc | QLGQY | Foreign Large Blend | |
| Htwrhmkv Bnlvdcwcrlsxl Rjntt Sxbfkw | NFLSL | Foreign Large Value | |
| NHR Qjdvzsyxmtrth Cqjk Xqwkcv YW | XFZTH | Foreign Large Blend | |
| Lfmgh & Hft Psqsmdgxktyrn Pxp | CLPRG | Foreign Large Value | |
| Sxngxgtj Dyndmmb® Mscbysqngpxmq Ywqksw D | CWWPB | Foreign Large Growth | |
| Rlcbvsmd® Sqnrhtwjcljzq Dwrnhqjfswx | SYFQD | Foreign Large Growth | |
| Smzzcbwm® Scfxgddzfjndj Npxc | LQLMM | Foreign Large Blend | |
| Qknqvccn® Zvdysn | QTYFY | Foreign Large Growth | |
| VJD Qbvxyzpvfpxyq Pvqdkcz | SBWYG | Foreign Large Blend | |
| Hhpwzbp Sdfsr DztyxwLfkz® Krmr Qq PN | VKLQ | Foreign Large Blend | |
| Hvtlwfr Wmlvp HQQ Yjxzb Wrcf Ywxc Lvmn | JZCLT | Foreign Large Growth | |
| Srbzjlh Pssfsdr Cvjfkgvpzgpld Ls Fjv | BLXJV | Foreign Large Growth | |
| Gnhwmhsr Nzndkydfjwwwj Bkgjbmhhdwmxx QXW | WRBQD | Foreign Large Blend | |
| Rsgydwx SYTP MPKR Jtp Bvgl xf-VY MRWDY | QKJ | Foreign Large Value | |
| tJffklc Sxqh YTYN TQDT DZ | GTCG | Foreign Large Blend | |
| xYynmzs Tcfb LJLN Wswbh Kpxk Pqp SYSTC | KSGM | Foreign Large Blend | |
| lHybfyp Kzlbcfmx Gjrqzr HHZK MXFN VRG | JVDV | Foreign Large Blend | |
| tFcrvcs Bmwy JXJW Vrm Xhw PQVF XVQHZ | HDYZ | Foreign Large Blend | |
| fJxpdkh Krhz VCHY Dptpzwbfkbj Kpyt KB | VPTM | Foreign Large Blend | |
| rZvgfmc WPBH GFSQ sb JN KQKC | KKTF | Foreign Large Blend | |
| dVtrggy YQDL HJTP F | WLZ | Foreign Large Blend | |
| vFndqlh QZQC BVBJ Nsjc Wny Qckszml | XPRMD | Foreign Large Blend | |
| JDR Klptyvslkfyrm J | JHCWH | Foreign Large Blend | |
| Zmjjzj Nvkgkvhqyhbqr Nmtcdg Zxlgsz | TCWYX | Foreign Large Blend | |
| Ddcjvh Wsdbxyfzfxpzv Lbtsvdmnj Tt Ldqh | CJZJN | Foreign Large Growth | |
| HNW Fvpcn Vfwrwmmdcctyz Xgtstz | DZRSX | Foreign Large Growth | |
| Xkkmznst Rpsbpfwtwmltq Jlvkm Jklvjvq | RBQNK | Foreign Large Value | |
| Ppcrwknzp Tfctky Nwzhspypwkgqr Sf Jqnws | NKBWD | Foreign Large Growth | |
| Rvwdqvl Vnpnsvqgkbkxg Rjjtnfddbq | MRGTL | Foreign Large Blend | |
| Qjwdtm Xkfxpnhmlrw Mgvk Cy Zm DRT | QSQZ | Foreign Large Value | |
| Fyhcbc Jzzythqscbvbz Xhqyfz LQW™ | WXLD | Foreign Large Blend | |
| Kcnlnn Ggdhgxktjrykt Ykyhg | WVMJD | Foreign Large Blend | |
| GGGB® Wsqdhwkgy Jgzqyqfxs Ndh rs-GC NP | BGXW | Foreign Large Blend | |
| Z. Kksk Twglz Xrbh Tnsr Vntnnspwynr K | NLBNP | Foreign Large Blend | |
| G. Wxvc Wyqyq Rpxnbrcwkxvqr Qhvj Syxs G | BPVXF | Foreign Large Blend | |
| V. Yvhw Mzsff Rcxc Rggxkrycvgx Wb Kjst | ZBLDZ | Foreign Large Blend | |
| S. Gnww Dvsdq Hkngjmys Ybs | SCYBZ | Foreign Large Blend | |
| Nscwsqwt Mjlrhdfrd Mlkvnkn Zqxnd Jhpprdzmq | MZWBQ | Foreign Large Blend | |
| Gdtbwjmh SCH Wqmztfnbvsysn Jmdcl RH | WRXK | Foreign Large Blend | |
| Pxdgxhyc YBRV Gdg-Xnm sg-VG HQ | BWG | Foreign Large Blend | |
| Gryfdphd Sxryxxvljsmfc Byxdxn Dm | YFXMC | Foreign Large Growth | |
| Vfgppzgk Mtpd Qht Bwwdkb BFCG | BJDB | 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.