Non-U.S. mutual funds provide an excellent choice for investors looking to diversify their investment across a wide range of foreign countries including both emerging as well as developed nations. Meanwhile, in an environment when the central banks of major regions including the Eurozone, China and Japan are opting for economic stimulus measures such as rate cuts and monetary easing to boost their respective economies, these countries provide lucrative investment propositions. Thus, if chosen carefully investors may benefit by investing in non-U.S. mutual funds despite worries regarding weak global growth.
Below we share with you 4 top-rated Non-US Mutual Funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all Non-US Mutual Funds, investors can click here to see the complete list of Non-US Mutual Funds .
T. Rowe Price International Discovery (PRIDX - Free Report) seeks capital growth over the long term. PRIDX invests a large share of its assets in foreign companies and purchases stocks issued from both mature and emerging markets. PRIDX focuses on investing in small and mid-cap companies. PRIDX uses a bottom-up approach to select its investments. The T. Rowe Price International Discovery fund has returned 9.2% over the past one year.
Justin Thomson is the fund manager of PRIDX since 1998.
Fidelity Series International Small Cap (FSTSX - Free Report) invests a lion’s share of its assets in securities of small cap companies having market capitalizations below $5 billion. FSTSX invests in companies located in foreign countries including those from emerging nations. Factors including economic condition and financial strength are considered before investing in a company. The Fidelity Series International Small Cap fund has returned 9.6% over the past one year.
As of October 2015, FSTSX held 154 issues, with 2.22% of its assets invested in USS Co Ltd.
Vanguard International Explorer Investor (VINEX - Free Report) seeks capital growth over the long run. VINEX predominantly invests in securities of foreign small cap companies having impressive growth prospects. VINEX considers factors including earnings growth potential, valuation and competitive scenario within the industry before investing in a company. Multiple investment advisors are used to select potential securities. The Vanguard International Explorer Investor fund has returned 8.3% over the past one year.
VINEX has an expense ratio of 0.42% as compared to the category average of 1.30%.
MFS International Value A (MGIAX - Free Report) invests generally in equity securities of non-U.S. companies including those located in emerging countries. MGIAX invests in securities including common stocks of companies that are believed to be undervalued. The MFS International Value A fund has returned 6.2% over the past one year.
As of November 2015, MGIAX held 103 issues, with 3.97% of its assets invested in Nestle SA.
To view the Zacks Rank and past performance of all Non-US 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 at https://www.zacks.com/funds.