These Global Stock Funds Are Going Against the Grain

US stocks have outperformed their non-US counterparts by a wide margin for a long period. For example, the Morningstar US Market Index posted an annualized gain of 12.9% for the 15 years ended March 2025. The Morningstar Global Markets ex-US Index advanced just 5.3% per year in the same time frame, even including its strong showing versus the US index so far in 2025. As a result, the Morningstar Global Markets Index, which has historically been closer to a 50/50 split, now has a US weighting of 63%.

Let’s take a closer look at global equity funds that are swimming against that tide.

Tweedy, Browne Value TWEBX, like the other funds featured here, employs a value-focused approach. While funds in the global large-stock growth Morningstar Category recently invested an average of 63% of their assets in US stocks and just 35% in non-US equities, global large-stock value category funds stashed 52% in the US and 45% outside of it as non-US stocks sport lower valuations. This fund’s long-tenured team looks for stocks trading at discounts to its estimates of intrinsic value and limits volatility by hedging some of its foreign-currency exposure back to the US dollar and building cash when opportunities are scarce. The team has found more companies overseas that meet its criteria; its US equity stake was just 33% at the end of 2024, while 60% of the fund was invested in non-US firms.

Tweedy, Browne Value fares best on a relative basis when equities turn south, but it has outpaced most peers and the MSCI World Value Index in 2025 even as global stocks have turned in positive returns. It had a Morningstar Medalist Rating of Bronze as of the end of March 2025.

A bolder offering with a concentrated portfolio and willingness to focus on smaller-cap fare, AMG Yacktman Global YFSNX has substantial appeal for the right investor. Its three managers are willing to go wherever they find stocks that they believe offer asymmetrical return profiles, typically because of complicated balance sheets that keep many investors away, or a significant yet lesser-known catalyst. The fund stashed 84% of assets in non-US stocks at the end of 2024—up from 68% three years earlier—including 11% in French conglomerate Bollore. The fund also held just 55 stocks, and 40% of its assets were in small- and micro-cap equities, so it’s likely to be more volatile than broad, large-cap-heavy indexes. The fund had a Bronze rating at the end of March.

Causeway Global Value CGVVX has typically sported an outsize non-US stock stake, in part because its investment process’ starting point is a quant-driven screen of statistically cheap companies. Within that pool, fundamental analysts seek companies with short-term operational issues that shouldn’t hamper long-term prospects. But while the fund’s non-US tilt has been a headwind in recent years, the fund has been on a tear—it has beaten 95% of its global large-stock value peers over the trailing five years because of strong stock selection. If non-US fare mounts a longer comeback, the fund’s run of outperformance could continue. It recently stashed roughly 60% of its assets in non-US stocks and just 39% in the US, a stance consistent with its recent history.

Causeway Global Value’s team leaders Sarah Ketterer and Harry Hartford are long-tenured and have built a strong and experienced team to succeed them when they eventually retire. The fund’s investor shares had a Gold rating at the end of March.

This article first appeared in the April 2025 issue of Morningstar FundInvestor. Download a complimentary copy of FundInvestor by visiting this website.