The Beat Goes on for Foreign-Stock Funds
Prevailing trends continued across the board in the third quarter.
Foreign-stock funds posted another quarter of solid gains, with the typical foreign large-blend offering gaining 3.85% in the three months through Sept. 28, 2017. Many of the trends evident in the first half of the year remained in place, such as robust emerging-markets returns and strengthening foreign currencies.
However, this currency strength somewhat obscured the divergence between developed- and emerging-markets equities. While the 6.9% return of the MSCI Emerging Markets Index in dollar terms was largely the same as what the index gained in local currencies, the U.S. dollar's weakness masked what was a largely flat quarter for developed-markets shares.
Kevin McDevitt does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.