Finding Foreign Funds that Fit
Our Premium Screener seeks out potential foreign large-blend picks.
Earlier this month, Morningstar retired the foreign-stock peer group and rolled out five new replacement categories that divide that rather large universe along valuation, growth, and capitalization measures.
Investors looking for international exposure will be able to use the new peer groups to assemble better-diversified portfolios and to pick foreign funds that are more in-line with their investing temperaments, as well as their goals and risk tolerance. The new categories will help investors get a better bead on performance, too, as star ratings and relative rankings will now reflect how a fund stacks up against those with similar orientations.
Even within these more-granular peer groups, however, plenty of differences persist. For example, not all foreign large-blend funds are created equal. Weighing in with more than $30 billion in assets, American Funds EuroPacific Growth Fund (AEPGX) (a Fund Analyst Pick in the category) is a titan in the peer group, and one with a tendency to sport above-average exposure to emerging markets. Sentinel International Equity Fund (SWRLX), meanwhile, has a slight value tilt, a comparatively svelte asset base of just $93 million and a management team with a willingness to make large sector plays on occasion.
Shannon Zimmerman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.