5 Foreign-Stock Funds for Risk-Averse Investors
These international funds have solid records of downside protection and competitive long-term returns, too.
Note: This article is part of Morningstar's May 2016 Risk Management Boot Camp special report.
For many investors, the idea of achieving international exposure via an index fund makes perfect sense. Funds such as Vanguard Developed Markets Index (VTMGX), Vanguard Total Intl Stock Index (VGTSX), and exchange-traded fund iShares MSCI EAFE (EFA) have become popular choices because they offer broad exposure at a low price. But for some investors, the idea of being fully exposed to the market's gyrations is too anxiety-provoking. In addition, as discussed in this article, there are other risk considerations that come with investing in foreign stocks--currency and geopolitical risks, to name a few.
Karen Wallace has a position in the following securities mentioned above: NEWFX, ARTKX. Find out about Morningstar’s editorial policies.