Advertisement
Smart Buying

3 Best International Mutual Funds to Play the Global Economic Recovery

Why you should look overseas to grow your portfolio.

U.S. stocks have trounced their foreign counterparts over the course of the current bull market, but the era of American stock market dominance began to wane this year. “For the first time in years, we’re seeing a broad-based global ecnomic recovery,” says Jim Paulsen, chief investment strategist at Leuthold Group. And although the U.S. is in the late stages of the recovery, foreign economies have more ground to make up—a boon for stocks in those countries.

Getty Images

Kiplinger's Best List, 2017

Advertisement - Article continues below

Paulsen favors stocks from emerging nations over those from overseas developed markets, but he expects both to outpace gains in U.S. stocks for the remainder of the bull market.

For broad inter­national exposure, consider a diversified, low-cost exchange-traded fund. Vanguard Total International Stock (VXUS, $55), a member of the Kiplinger ETF 20, tracks an index representing the entire market outside the U.S. The portfolio allocates 84% of assets to developed nations, with the rest in emerging markets. It comes with an expense ratio of 0.11%.

Advertisement
Advertisement - Article continues below

Two mutual funds from the Kiplinger 25, the list of our favorite actively managed funds, offer a more targeted approach. Oakmark International (OAKIX) invests in bargain-priced stocks in de­veloped Europe and Asia. Baron Emerging Markets (BEXFX) focuses on large and midsize emerging-markets companies with above-average growth potential and competitive advantages over their peers. Both funds sport five-year annualized returns that place them in the top 5% of similar funds.

Advertisement

Most Popular

2020 Stock Market Holidays and Bond Market Holidays
Markets

2020 Stock Market Holidays and Bond Market Holidays

Is the market open today? Take a look at which holidays the stock markets and bond markets take off in 2020.
July 1, 2020
What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
Searching for the Perfect Place to Retire
Empty Nesters

Searching for the Perfect Place to Retire

We home in on two places with less traffic and lower costs. 
July 2, 2020

Recommended

10 Stocks to Invest in the Health Care Revolution
healthcare stocks

10 Stocks to Invest in the Health Care Revolution

These companies are fighting disease and improving our standard of care.
July 2, 2020
Cash In With This Gaming ETF
Technology

Cash In With This Gaming ETF

Cash in on the video gaming craze with this fund.
July 1, 2020
13 Best Vanguard Funds for the Next Bull Market
mutual funds

13 Best Vanguard Funds for the Next Bull Market

Optimistic that the bounce since March is indeed the start of the next bull market? Here are the 13 best Vanguard funds to help you make the most of i…
June 25, 2020
A Mid-Cap Fund With Big Gains
mutual funds

A Mid-Cap Fund With Big Gains

The fund’s best performers over the past year were software firms.
June 24, 2020