Over the years, studies have consistently shown that investing in both domestic equities and foreign stocks reduces portfolio risk while enhancing returns. In addition, the primacy of the US equity markets has greatly diminished with its share of the global stock market capitalization declining steadily. This is why investors can no longer limit themselves to domestic investments. By holding widely diversified portfolios, selected after careful research, global mutual funds offer a secure and attractive opportunity for investors.
Below we will share with you 5 top rated global mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all global funds, investors can click here to see the complete list of funds.
American Funds Capital World Growth & Income A (CWGIX - Free Report) seeks long-term capital appreciation and current income. The fund mostly invests in common stocks of prominent companies around the world, most of which may pay dividends. The fund invests in common stocks that are denominated in US dollars and also in other currencies. The fund also invests a major portion of its assets in securities of issuers residing outside the U.S, including developing countries. The global mutual fund returned 4.2% over the last one year period.
The fund has an expense ratio of 0.8% as compared to category average of 1.33%.
Northern Global Sustainability Index (NSRIX - Free Report) invests a major portion of its assets in securities listed in the MSCI World ESG Index. The fund seeks returns equivalent to the performance of the securities listed in the MSCI World ESG Index. The index consists of highest-rated companies in regional sectors. The global mutual fund returned 3.7% over the last one year period.
Thomas E. O’Brien is the fund manager and has managed the fund since 2008.
Dodge & Cox Global Stock (DODWX - Free Report) seeks long-term appreciation of principal and income. The fund invests in equities of mid to large cap companies from at least three countries. A minimum of 40% of assets are invested in foreign securities including those from emerging nations. It invests a lion’s share of its assets in common stocks and preferred stocks or other securities related to them. The global mutual fund returned 8.1% over the last one year period.
The fund has an expense ratio of 0.65% as compared to category average of 1.33%.
T. Rowe Price Global Growth Stock (RPGEX - Free Report) invests a lion’s share of its assets in in large-cap firms across the globe. The fund invests in a minimum of five countries, including the U.S. The fund invests at least 40% of its assets in large-cap foreign companies. Under unfavorable foreign conditions, a minimum of 30% of its assets are invested in foreign companies. The global mutual fund returned 5.2% over the last one year period.
R. Scott Berg is the fund manager and has managed the fund since 2008.
Fidelity Value (FDVLX - Free Report) seeks capital growth over the long run. It invests in “value” stocks of both U.S. and non-U.S. companies. These stocks are suggested by Fidelity Management & Research Company (FMR) depending on factors such as assets and growth prospect. The fund focuses on acquiring common stocks of mid-cap firms, but may also invest in large and small cap companies. The global mutual fund returned 7.9% over the last one year period.
As of August 2014, this fund held 296 issues with 1.56% of its assets invested in Sempra Energy
To view the Zacks Rank and past performance of all global mutual funds, investors can click here to see the complete list of funds.
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank in our Mutual Fund Center.