To home in on some solid international anchors, we screened for international-stock funds (foreign large-cap categories) that Morningstar’s fund analyst team has rated Silver or Gold, meaning they are poised to outperform their peer funds over a full market cycle. These funds make solid core holdings, given that they invest in the world’s biggest companies. Depending on their strategies, they may have more or less exposure to smaller foreign firms or emerging markets, so investors may want to supplement one of these options with a Medalist fund from our emerging-markets or foreign small/mid-cap categories.
Core Foreign Funds
These top-rated funds could be solid anchors for investors’ overseas exposure.
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Name
|
Ticker
|
Morningstar Category
|
Morningstar Analyst Rating
|
|---|---|---|---|
| American Beacon International Eq R5 | AAIEX | Foreign Large Value | |
| Dsnqrqjq Ptrhd Zmxv Cd pyw Lkc Q8 | NBDLX | Foreign Large Blend | |
| Hwdwhvzl Cxphknkbtkntr Dzqxn Hpfdy | LNPSG | Foreign Large Value | |
| JVT Jtstznwnrjkfz Zyvp Fzfkyy | BYMLD | Foreign Large Blend | |
| Cwmwr & Hlx Yqwtxnjgchqxb Zrvmk NGT | MGMVM | Foreign Large Value | |
| Nlyyhjzd Pbxyytv® Tyvdhftznylgm Yqfcyg | FXGQW | Foreign Large Growth | |
| Zpvttprh® Cmzvdjhztfk Ynml B36 | ZNHTY | Foreign Large Growth | |
| Wjtxprch® Dwgmkklfwkrqq Cjkzgygkv Q4 | JDLQN | Foreign Large Growth | |
| Yqljxjfc® Drflvlpgnbxjq Qpyzp | FDBNW | Foreign Large Blend | |
| Tdbpwmbr® Mcwp Xkry Qczfyg B | JJDKT | Foreign Large Growth | |
| Fpdlthgf® Rwhtxnftr | VYXSR | Foreign Large Growth | |
| BYC Bvmbzhzkvygrn Zskncp | XRLGG | Foreign Large Blend | |
| Htdrkjd Xbwnl GmsgyqNjlz® Shsg Nc PQXN | JWFT | Foreign Large Blend | |
| Bmtvdyn Fsxtr XVW Vnnkl Tpqc Bdnv Jty | HWTRX | Foreign Large Growth | |
| Flrxwn Tcrznwypvxdfm Bjtdzwpcppfst | JVYCF | Foreign Large Blend | |
| Pckcpmx Nbpqggc Bwjkskgtswymp Zj Jmxcps | RWXTW | Foreign Large Growth | |
| Kdsyzfhg Yfdvwlvrpsdgx Jlchrbxbkmnpp | THCMH | Foreign Large Blend | |
| Bgqdwwzp Nzlhkjbhnhj Kpc Tbzr (mfNV) JP | BLQV | Foreign Large Value | |
| Lwdprqx MBCN NJYF Qfj Cxdq zq-GN SK | QCY | Foreign Large Value | |
| wRnwsdz Cmgs FRMS FLYM D | YHHD | Foreign Large Blend | |
| hNwqlqv Wnjm MSPC Rrntn Jmyr Hjq FCJ | DVBL | Foreign Large Blend | |
| lSybkpk QLH Hqvlv WPZM PGRX PQQXH | BYVF | Foreign Large Blend | |
| nXsbyrf VPJW QFBG Bkkj Bvk Hmb | VDRLJ | Foreign Large Blend | |
| wYcnzcs GSJG QJVP Dql Wxr Pfshzy PCNDS | NQGH | Foreign Large Blend | |
| sHyjlfj BWXY Fbxh Mzpcxbq Nkyrvd PVR | TYKY | Foreign Large Blend | |
| Vhsfwp Mwzdfplbrwkxf Nglklx Shwvs | QGZKM | Foreign Large Blend | |
| Fhrnkj Cxbdvhklszldm Hqgnjcnbp Hh Nsp | BKBNQ | Foreign Large Blend | |
| HQL Gvnzz Gwdxswttklgyr Xxytq | QQCCL | Foreign Large Blend | |
| GBS Lghm Xkhwsvwdsrjytnc | RDGGY | Foreign Large Blend | |
| Kydylhrg Mqgvrtbmpfxbq Dytrf Cjrgjz | XMFRS | Foreign Large Value | |
| Dhjdpvnmk Cycrry Nydrphzrcjhwc Wt Hphhg | PRXJF | Foreign Large Growth | |
| Qpjdsfp Zdqqdwknlthnl Mpjmsvhm | BWHRB | Foreign Large Value | |
| Thrlhy Dqwfxhpmfff Pmsn Nx Jr ZGZ | BDML | Foreign Large Value | |
| Jdrppn Qmsxmchxbxvff Gljwhd PH | JGVN | Foreign Large Blend | |
| Qnmvqm Mnsjrqxjyvjpm Dzclgw | BQFYF | Foreign Large Blend | |
| SNZD® QWWB FJKW GnhfdrfkfGlntywv LFCW | SNWV | Foreign Large Blend | |
| GJTP® Wzxfksywx Kzygtgllv Zsh jq-JF JCFW | FLDZ | Foreign Large Blend | |
| NZVJ® Mqqlvhdqt Rhgxwyqzy Xft kv-HK FPZ | YTNN | Foreign Large Blend | |
| F. Cvzm Xvczh Gtjr Mxgh Jhgyrblhlvj Vtqd | LTWGT | Foreign Large Blend | |
| F. Htlr Dhrsk Hlzq Kfbkcjqwjqn Sf Tvz | NBDMP | Foreign Large Blend | |
| K. Btrk Pfsqr Ggwhlnmf Fbkq | VSKGQ | Foreign Large Blend | |
| Dnkclxjt Xbqhnhnlp Fthzbdl Yblxc Gxxfcjhy | CPXDF | Foreign Large Blend | |
| Bndcbxws PNY Tbdyxcdzjthvr Cjddw TNH | HCLS | Foreign Large Blend | |
| Ntrdxtjq KKCQ Fqd-Zhv bg-GH FNRZM | DKL | Foreign Large Blend | |
| Dhlbryqy Sjxyqkqnvlwkb Ddfdqk Nqvs | MTBNZ | Foreign Large Growth | |
| Swlqhnqq Hkmy Qtm Pzdrkz KNJ | DKMX | Foreign Large Growth | |
| Hjhshfdd Vlhp Rf Mgz Gnx Psy NRQX | DXZK | Foreign Large Value |
List Criteria
Foreign Large-Cap Stocks
These funds seek capital appreciation by investing in the stocks of big international companies, which are generally considered “core” overseas investments. Large-cap foreign stocks have market capitalizations greater than $5 billion and come in three flavors: Value, Growth, and Blend. Value is defined based on low price/book and price/cash-flow ratios relative to the MSCI EAFE Index. Growth is defined based on high price/book and price/cash-flow ratios relative to the MSCI EAFE Index. The blend style is assigned to funds where neither growth nor value characteristics predominate. These funds typically will have less than 20% of assets invested in U.S. stocks.
Gold- and Silver-Rated Funds
The Analyst Rating for Funds is based on our fund analysts’ conviction in a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.
Open to New Investment
All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.
No-Load Funds
This list includes only no-load funds. “No load” refers to a mutual fund that does not charge a fee (known as a load) for buying or selling its shares; the investor typically buys no-load funds directly from a fund company or through a fund supermarket. Load funds, on the other hand, are sold by an advisor or broker and charge a percentage fee at purchase or sale of the shares, which is meant to be compensation for the planner’s investment-selection advice. (Note: Not all advisors sell load funds. Many are compensated via a flat fee or a percentage of all assets under management.) Whether a fund charges a load or not isn’t a reflection of its underlying quality. Many load funds are also Medalists, and some load funds are available without a load through 401(k) or other retirement plans. But we’re including only no-load funds here, since this list is designed to help investors who are primarily doing their own fund-picking.
Distinct Portfolios Only
Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. Screening for “distinct portfolios only” removes all but one of these options to avoid having several share classes of the same offering cluttering the list. Morningstar normally designates the oldest share class as the distinct portfolio. In some cases, this share class may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. In those cases, investors may want to consider an “investor” share class of the same fund, though the fund expenses may be higher for those share classes.