The Best Foreign-Stock Funds
These international mutual funds and ETFs all earn Morningstar Analyst Ratings of Gold.
There are plenty of reasons to own international stocks in a portfolio. Some investors want foreign stocks in their portfolios to round out their exposure to the global stock market. Morningstar’s director of global exchange-traded fund research, Ben Johnson, points out that U.S. stocks constitute about 55% of the world's public equity market cap, with foreign stocks representing the remaining 45%. But most U.S.-based investors' equity allocations are nowhere close to that breakdown.
Others may want to tilt their portfolios toward foreign fare after a period of U.S. stock dominance, such as we've seen during the past several years. At the end of June 2020, the average U.S. large-blend fund had trounced the average foreign large-blend fund by nearly 7 full percentage points annually over the trailing five- and 10-year periods.
Susan Dziubinski has a position in the following securities mentioned above: VWIGX, DODFX, NEWFX. Find out about Morningstar’s editorial policies.