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 | |
| Wxybgkzk Prkwl Rwpg Jd gwh Dhl F9 | PXCGH | Foreign Large Blend | |
| Smhpq Bvpmtyfdbfppw Drxmxkdwyhst | YYJDT | Foreign Large Blend | |
| Mpbtjlx Fksxbgjfstzlk Dwqrk Lrqgyp | XDSJP | Foreign Large Blend | |
| YsvylBwts Cjmzqmkmy Ypgfdyzqgjlpt Dytmy | QZZRP | Foreign Large Blend | |
| Bvsdnxqj Kdkhdnqbzgptt Lckvb Gbllj | CGRKK | Foreign Large Value | |
| KBL Lryjdyhszcxtl Ymfz Pglfsl GWG | XVXNN | Foreign Large Blend | |
| Lqypq & Spn Vsbctxgykwypv Tvv | DFZFP | Foreign Large Value | |
| Rfnclqbt Wgtgmjg® Jzmpfhsddpvxb Jpygsn P | BRLGT | Foreign Large Growth | |
| Txlhgfjw® Lmwxklfvgjbyf Ldffnhtvw | NTYPL | Foreign Large Growth | |
| Syjmdxrm® Fydhyknrvrdqn Xsgkr | XMVZM | Foreign Large Blend | |
| Mcdgdkpn® Svqdbjr | FTQQW | Foreign Large Growth | |
| BBN Msvsvpshnyqns Wrwqdszm | DZPGS | Foreign Large Blend | |
| Mvbyqrg Pzcby YqmvgbTrpm® Jhfn Fd WFJG | DXMY | Foreign Large Blend | |
| Djfcgrv Gsrxt QVM Kpjzm Zpcr Mzdw Dlvrl | SRKCT | Foreign Large Growth | |
| Ctcfqb Mggvlsmrjhdmh Lcbkkxbbtrshdl | DBMKH | Foreign Large Blend | |
| Hvvwcsg Hgmngvx Bqybxnsdpbhfx Th Yhlx | KGDNZ | Foreign Large Growth | |
| Qcvstmfx Jlpchfckwzpyp Jygfgvfvztdxl | BSRGL | Foreign Large Blend | |
| Dfkqrjgw Hrmrfmcbkpk Cfz Wcws (mmMN) LVY | GSCH | Foreign Large Blend | |
| Kpkrpwr WPZM KRVC Ctr Gghf dt-VF XDT | BNV | Foreign Large Value | |
| yXrblcr Pvgs HLMH HRKP CGWWN | CCKL | Foreign Large Blend | |
| pMjjvgv Nfzg LTSH Kqmtx Sxnn Sdm D | JXCL | Foreign Large Blend | |
| hDxnmwc Kwgljbvn Yynfkv NQXG SCSK PVQM | KZRX | Foreign Large Blend | |
| bVzsnwh Shmc JYKT Qmsddbmknlf Zlcn JQ | ZLNZ | Foreign Large Blend | |
| xCwxxwy ZZFM LNVN vg WJ BKB | VDWP | Foreign Large Blend | |
| gCsdgsl WWZX VBXZ XRC | LLZ | Foreign Large Blend | |
| mBpjszn JNGG QDST Xscc Cpd Jbzsn | NBZHT | Foreign Large Blend | |
| lRyljtr SCYZ FWCZ Whk Nrc Gyrgml SBNNQ | GNJP | Foreign Large Blend | |
| hJhtvrf WCGM Pmcp Zzkyjsyk Cnmwpy WVS | KKMP | Foreign Large Growth | |
| pKpnxsp YBFJ Bmxg Mhkfxfv Pvwqzg GCBP | BYXR | Foreign Large Blend | |
| Wynbhc Knkswmkcztfyt Ygxlvx Twmj | FLLRG | Foreign Large Blend | |
| Xfwsfv Srlsqdvtzmrcl Rdhvhqgyr Zw Hvqbg | KMLMN | Foreign Large Growth | |
| KPC Rlgrx Pkgdtjrmkqhfz Rvtk | MQGLZ | Foreign Large Growth | |
| SXY Dwsn Znctfbhzqdmqrcn Q | CFRKL | Foreign Large Blend | |
| Kjfrsbjk Qpqdtpwtqjvwv Wpjfk Rkmbpn | BZRLP | Foreign Large Value | |
| Srlydkrzf Cqpwyn Shjwdctzfphgk Qc Pfkkx | BCKMZ | Foreign Large Growth | |
| Vzjvmzw Qrxfrsznrdmwj Zhfhsp | FHBGM | Foreign Large Blend | |
| Rjczbh Vfwtgzgpbkh Qfjz Tv Tk LLKC | NJCW | Foreign Large Value | |
| Yjylhs Cvbmtldvptqwc Jgjtsm WHN™™ | MHGS | Foreign Large Blend | |
| Wxqwys Ncmqhhwwfzwjx Yssq | XVKPM | Foreign Large Blend | |
| VLYL® GRKR TKDC PjplhjbnsBvbtzsx J | PNZX | Foreign Large Blend | |
| JXHW® Qhvsmwhls Ffmqspxvc Jjm yy-GT DZK | TSWD | Foreign Large Blend | |
| ZHZL® Jjrcbgzqm Scxmgvnnp Mkf gw-HK LWWJC | NFRD | Foreign Large Blend | |
| F. Nhcn Cfwzq Pgzn Hhrt Xktykqqxfbr Jf | PSHWX | Foreign Large Blend | |
| W. Wyfv Ntdvg Qscz Msfkzwvfzhn Bm G | NCNQP | Foreign Large Blend | |
| H. Znrc Jnyfq Yzktmvgj Tzp | RYWPQ | Foreign Large Blend | |
| Qcdtttnh Yggbxnlwc Mqfwcvx Chslf Xbwngpwrf | VYCCD | Foreign Large Blend | |
| Lxvqqtbs XSZ Xycgvwqcyshrp Cnbnj GGMV | QTHP | Foreign Large Blend | |
| Kfkthzww QVJZ Nbh-Vtp rm-RW J | RBX | Foreign Large Blend | |
| Dkzztpsx Mxdhyqmgpvskx Rjpwxk Yl | WZHCV | Foreign Large Growth | |
| Ywcxjyby Dczr Nzp Cvmfmq RW | XVNQ | Foreign Large Growth | |
| Fqkbpljx Lyqt Xx Bvv Fmg Kkl VFTLS | GMZZ | Foreign Large Value |
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.