Investors should not afford to limit themselves to investing only in domestic stocks with a myriad number of attractive opportunities existing in global markets. Moreover, research has consistently shown that investing in a combination of domestic and foreign stocks can produce better returns with less risk than investing in U.S. equity markets alone. Global mutual funds offer a world of opportunities to investors willing to diversify their portfolios to include international investments.
Below we will share with you 5 top rated global funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund to outperform its peers in the future. To view the Zacks Rank and past performance of all global funds, then click here.
Marsico Global (MGLBX) seeks capital appreciation by investing in domestic and foreign companies which have the potential for long term growth. At least 40% of its assets are invested in securities of foreign companies or in those firms with significant international operations. This global fund returned 45.82% over the last one year period.
The global fund has a minimum initial investment of $2,500 and an expense ratio of 1.63% compared to a category average of 1.53%.
Manning & Napier Overseas (EXOSX) invests the majority of its assets in foreign securities. It may also consider purchasing ADRs and dollar denominated foreign securities. The global fund invests in securities of companies from both developed and emerging markets. It may invest up to 10% of its assets in any one country. It is a no-load fund.
The global fund returned 48.21% over the last one year period and has a five year annualized return of 7.16%.
Dodge & Cox Global Stock (DODWX) seeks both income and capital growth. It invests in a wide range of companies from different countries, including emerging markets. It focuses on purchasing securities issued by large and mid-cap companies. The global fund invests a significant portion of assets in foreign securities. The fund returned 63.58% in 2009. Charles F. Pohl is the fund manager and has managed this global fund since 2008.
Templeton Global Smaller Companies A (TEMGX) invests a large share of its assets in small companies worldwide. A significant amount of its assets are used to purchase securities issued by smaller companies from emerging markets. This global fund has a ten year annualized return of 5.95%.
As of December 2009, this global fund held 90 issues, with 2.65% of its total assets invested in Tempur-Pedic International, Inc.
Goldman Sachs BRIC A (GBRAX) seeks capital growth by investing at least 80% of its assets in companies located in Brazil, Russia, India and China It also purchases securities of companies with significant interests in these markets. The global fund returned 95.72% over the last one year period. The fund manager is Richard Flax and he has managed this global fund since 2006.
To view the Zacks Rank and past performance of all global funds, then click here.
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 http://www.zacks.com/funds/mutualfund/
