Investors may find non-U.S. mutual funds more attractive than those having significant domestic exposure in the current backdrop of rate-hike fears and crude slump. Moreover, the strengthening of U.S. dollar on Fed policy tightening amid global monetary easing also put foreign mutual funds in a favorable position.
While major economies including Europe, China and Japan are opting aggressive economic stimulus measures to boost their economies, the Fed is preparing for a rate-hike in the near term. Moreover, indication of a slowdown in the third quarter and a low inflation rate also had a negative impact on investor sentiment. In this environment, investing in non-US mutual funds may prove profitable for investors.
Below we share with you 5 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 .
Oppenheimer International Small Company Y ( OSMYX ) invests the lion's share of its assets in equity securities of companies having market capitalization similar to those listed in the MSCI All Country World (ACWI) ex-U.S. SMID Index. OSMYX seeks to provide capital appreciation over the long term. The Oppenheimer International Small Company Y fund has a year-to-date return of 13.2%.
Rezo Kanovich is the fund manager of OSMYX since 2012.
Wasatch International Growth ( WAIGX ) seeks long-term capital growth. WAIGX primarily focuses on acquiring equity securities of growth companies located in foreign lands. WAIGX may also allocate a notable portion of its assets in securities of companies from emerging economies. WAIGX invests in companies with market capitalization below $5 billion. The Wasatch International Growth fund has a year-to-date return of 10.3%.
As of September 2015, WAIGX held 91 issues with 3.21% of its assets invested in PATRIZIA Immobilien AG.
Fidelity International Small Cap Opportunities ( FSCOX ) invests the majority of its assets in small cap companies located outside the U.S., including those from emerging countries. FSCOX emphasizes investing in common stocks of companies with market capitalization not more than $5 billion. FSCOX invests in securities issued in different countries. The Fidelity International Small Cap Opportunities fund has a year-to-date return of 8.3%.
FSCOX has an expense ratio of 1.30% as compared with the category average of 1.53%.
Thornburg International Value A ( TGVAX ) seeks capital growth over the long run. TGVAX generally invests in securities of countries excluding the U.S. These securities may also include foreign depository receipts. Though TGVAX focuses on acquiring securities issued in developed nations, it may also invest in securities of companies located in developing nations to a lesser extent. The Thornburg International Value A fund has a year-to-date return of 6.8%.
Lei V. Wang is one of the fund managers of TGVAX since 2006.
Artisan International Small Cap Investor ( ARTJX ) invests a large chunk of its assets in common stocks of foreign small cap companies. ARTJX allocates its assets across different countries including developed as well as emerging and less-developed economies. However, ARTJX invests a maximum of half of its assets in securities of companies from emerging and less developed nations. The Artisan International Small Cap Investor fund has a year-to-date return of 9.6%.
As of September 2015, ARTJX held 48 issues with 8.1% of its assets invested in Wirecard AG.
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 http://www.zacks.com/funds .
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