Skip to Content
US Videos

3 Foreign-Stock Funds for Rebalancing in 2020

Look to these Morningstar favorites to increase your international-equity exposure.

Mentioned: , , ,

Susan Dziubinski: Hi, I'm Susan Dziubinski for Morningstar. As a group, international stocks rebounded in 2019, yet U.S. stocks did even better, and as a result, investors may find that their portfolios are more exposed to U.S. stocks than they might think. Here are three of our favorite foreign-stock funds for bringing balance to your portfolio in 2020.

Dan Culloton: Oakmark International Small Cap is an excellent option for rebalancing because it uses a proven approach to invest in international small-cap stocks. It has a very experienced manager, David Herro, who runs Gold-rated Oakmark International, and he's ably assisted by Justin Hance and Mike Manelli, two veteran Harris Associates analysts who are also on Harris Associates' stock selection team. They use the same approach as they use at Oakmark International. They look for stocks that are trading at discounts to their estimates of their intrinsic value, and they hold on for a long period of time. They like to buy when things are under a cloud or are facing some sort of company-specific controversy, and they like to hold until their theses play out. The result is you have a portfolio that doesn't look like the index or its peers. It has a very lumpy risk/return profile. For example, in 2018, it lost about 24%, then it bounced back in 2019 with a 32% return. So, you have to be prepared to ride out some rough periods in this stock fund.

Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.