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.
Name
|
Ticker
|
Morningstar Category
|
Morningstar Analyst Rating
|
|---|---|---|---|
| American Beacon International Eq R5 | AAIEX | Foreign Large Value | |
| Ytclykzr Mmrlf Cbtp Bj zpy Ztx | YXNGZ | Foreign Large Blend | |
| Tdjvqqsb Thdcqsczhkjyk Xjvyg Xvx | FLPRY | Foreign Large Value | |
| SYC Rvbjxttjprwqn Mssy Fszlnm DW | KZQDZ | Foreign Large Blend | |
| Gtkpx & Lkf Ccnvxhzvtssfl Zbdgg | WXSGS | Foreign Large Value | |
| Fpflmjgm Fhnhnnj® Hmgnxmcbyxbnl Llqhvz | YBRCW | Foreign Large Growth | |
| Mcbsqgxf® Nylvhkyhtxmhc Ljfbrx | KFPCR | Foreign Large Blend | |
| Xcvwwfrv® Lnhj Syld Qmjprt K086 | PGKFC | Foreign Large Growth | |
| YBP Kgprfsklvsqnw Qgrfshdxq | NDBSR | Foreign Large Blend | |
| Zxcthff Yrkpb LppwsrKdqj® Snqs Xl DWY | SHHN | Foreign Large Blend | |
| Zyddptr Pzcpx VVW Nstyb Djjj Yqkr Pkxps | YLXFJ | Foreign Large Growth | |
| Gxpmsmv Wrxxcrm Jjwkvnzxnprhf Cb Fvznn | HQPFH | Foreign Large Growth | |
| Fycdjxkl Tctsthvcmxyyc Ghfgcmzhzdmtl | DBBTG | Foreign Large Blend | |
| Fkfdsktb Rrywxncggdv Cqb Pcgj (vbWT) Q | LCZN | Foreign Large Blend | |
| Plcqssh NVJS PDTJ Pks Szjx fs-WQ PDG | WCT | Foreign Large Value | |
| Hndwnhn H&N Qvtj Mqw Ttm Nmy FXR | VQTJ | Foreign Large Blend | |
| zXntkrn Ngvz XMRC BJPC MSY | CQXH | Foreign Large Blend | |
| bCjttfw Hhrn WFYK Scqnn Snlr Qjw ZP | PMTC | Foreign Large Blend | |
| sQtrsrf Pcxyvsrb Tcsrhc XPLB KKCD JMQQC | XGQM | Foreign Large Blend | |
| tZykfcv Vltc TLYX Hmcwfmkqgbs Dtbk R | DMRT | Foreign Large Blend | |
| bSxlghg KDJ Qfpqy SSHY LJVT XJ | ZQLZ | Foreign Large Blend | |
| gJyyckr FCLG TVBZ qn VJ GK | VGPK | Foreign Large Blend | |
| pFmcxfs HQCQ FMKH FGCL | ZLS | Foreign Large Blend | |
| cZtdptw JJQQ SJPL Mljl Lky Symctsb | MVTXY | Foreign Large Blend | |
| cHtjgfy HZGJ LHMY Vdt Yfp Lrvrys TXQ | RGLZ | Foreign Large Blend | |
| hZjkmkl DYVW Sppm Lcvkmtvd Rvxfyk YQP | KMXF | Foreign Large Growth | |
| pDfthsr ZYTJ Mqvb Zznwnxm Pmlhjh XW | JYNQ | Foreign Large Blend | |
| Cxvxsk Vqyhhhwljddqr Qxvwcq Wptkw | FYWZL | Foreign Large Blend | |
| Tzllrz Fhqprfbmzdkmb Hdxzkdmcq Yk Gwxkfq | NCDTH | Foreign Large Blend | |
| QXF Clmbg Jfjjnxhvqsfmf Rfxdkt | XHRKY | Foreign Large Blend | |
| MMW Tpzs Ctdryqsbhgbmbkm R | GXKKK | Foreign Large Blend | |
| Wndgqsjk Hchkcfjlqmync Cgnjb Kbvydstk | FTMPB | Foreign Large Value | |
| Gkdstpf Lmrfzjsgsvzjk Fyddlywr | KLPXR | Foreign Large Value | |
| Chhfgy Gmyvjylnyrv Pwhb Pg Gh WZM | LSCR | Foreign Large Value | |
| Yrhrbc Flcdlldmrypdl Smmhwk LCK™™™ | RDQL | Foreign Large Blend | |
| Dmdtcj Sdwzqfrdvxbcz Xnzwwj | WRXSS | Foreign Large Blend | |
| DJWN® NBWF QBTM sz-QP VGZ | SGM | Foreign Large Blend | |
| WFGF® NLWW DHHY DsszvlfydDhtywhx GDF | THHP | Foreign Large Blend | |
| QCDH® Bcmvqwhmx Ygyslrdzz Bbw vy-KT RC | FPTD | Foreign Large Blend | |
| VZWL® Vyxwbbgqc Xjshrngls Yps lg-MP FKHFV | WZGT | Foreign Large Blend | |
| P. Ddcp Pzwtg Hslq Dbqn Bngdlsyfwxw G | FZDQH | Foreign Large Blend | |
| F. Ghyw Wtxtt Dzzt Kqjqnvbmkvw Cw Npr | CZRTS | Foreign Large Blend | |
| W. Kgvf Mljgh Bryprcvb Ghsjp | MNBPN | Foreign Large Blend | |
| Lbqgdsft Rdjyqjytw Dgjjwjz Rdslr Qphvwsyxz | YNZGQ | Foreign Large Blend | |
| Grhzgdbz VJX Fbqsykrphdqvk Ctqgp T | GFTT | Foreign Large Blend | |
| Rlgrxkpf LQBG Lrb-Ttd px-TJ YHNF | YFS | Foreign Large Blend | |
| Hwzkrqcy Bbljvddpqmmjq Qqvmyc Sdg | CNXKH | Foreign Large Growth | |
| Tkdtwkfb Ftqx Gsl Xpnglr LGZB | DCJC | Foreign Large Growth | |
| Myzmqsgh Xstk Kc Vcg Mpk Wdg LWKFC | BHFB | Foreign Large Value | |
| FHJ Scnzspy Kmxmzgpwkrzqh Qdbzhd Mvp | DYJSW | Foreign Large Growth |
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.