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 US equity markets has greatly diminished with its share of 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 buy-ranked global mutual funds. Each has earned either a Zacks Mutual Fund Rank #1 (Strong Buy) or a Zacks Mutual Fund Rank #2 (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 SMALLCAP World A (SMCWX - Free Report) invests a large chunk of its assets in equity securities of small cap companies that are believed to have impressive growth prospects. SMCWX invests in securities of companies having market capitalizations below $4 billion. SMCWX invests a notable portion of its assets in securities of companies located in foreign lands, including those from emerging nations. The American Funds SMALLCAP World A fund has returned 4% in the year-to-date frame.
SMCWX has an expense ratio of 1.07% as compared to category average of 1.28%.
VY Oppenheimer Global I (IGMIX - Free Report) seeks to provide long-term capital growth by investing in common stocks of companies throughout the globe. Though IGMIX invests in non-US securities including those issued in developing and emerging countries, IGMIX primarily focuses on acquiring securities of companies located in developed nations including the US, Western European nations and Japan. IGMIX generally invests in mid and large cap companies. The VY Oppenheimer Global I fund has returned 2.7% in the year-to-date frame.
Rajeev Bhaman is the fund manager and has managed IGMIX since 2004.
Oppenheimer Global A (OPPAX - Free Report) invests in common stocks of both US and non-US companies including those from developing and emerging nations. Though OPPAX generally invests in securities of companies from developed nations irrespective of market capitalizations, OPPAX primarily focuses on companies having market capitalizations of mid and large size. OPPAX invests in a minimum of three countries. The Oppenheimer Global A fund has returned 2.4% in the year-to-date frame.
As of July 2015, OPPAX held 93 issues with 2.51% of its assets invested in McGraw Hill Financial Inc.
Deutsche Global Small Cap S (SGSCX - Free Report) seeks long-term high capital growth. SGSCX invests a lion’s share of its assets in equity securities of companies having market capitalizations of $500 million to $5 billion. SGSCX invests in securities of both domestic and foreign companies. The Deutsche Global Small Cap S fund has returned 3% in the year-to-date frame.
Joseph Axtell is the fund manager and has managed SGSCX since 2002.
American Century Global Growth Investor (TWGGX - Free Report) invests in securities of companies from developed markets including the US. TWGGX invests in companies that are believed to have above-average earnings and revenues growth prospect. TWGGX seeks capital appreciation over the long run. The American Century Global Growth Investor fund has returned 1% in the year-to-date frame.
TWGGX has an expense ratio of 1.08% as compared to category average of 1.28%.
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. Pick the best mutual funds with the Zacks Rank.