The fortunes of U.S. equity markets continue to be a key determinant of the health of the global economy. However, their dominance has receded significantly over the years and a world of exciting opportunities has emerged in global markets. Moreover, research has shown that a portfolio with a combination of domestic and foreign securities produces greater returns over the long term. Global funds allow investors to hold an optimum combination of international and domestic investments without incurring the costs of holding such securities individually.
Below we will share with you 5 top rated global mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future.
ING Global Equity Dividend A (SGENX) seeks capital appreciation with a secondary objective of dividend income. The fund invests a large proportion of its assets in equity securities of companies that offer regular dividends. At least 65% of its assets are invested in different countries including the United States. This global fund returned 13.83% over the last one year period.
The global mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.40% compared to a category average of 1.50%.
Fidelity Worldwide (FWWFX) invests in at least three countries at any given point in time, including the U.S. The fund focuses on investing in mature economies located in North America, the Pacific Basin and Europe. The global mutual fund has a ten year annualized return of 5.26%.
William Kennedy is the fund manager has managed this global mutual fund since 2006.
Hartford Global Growth A (HALAX) seeks long-term capital growth. At least 65% of the fund’s assets are used to purchase common stocks of growth companies worldwide. Up to 25% of its assets may be invested in companies whose primary business operations are conducted in emerging markets. This global fund returned 22.68% over the last one year period.
As of January 2011, this global mutual fund held 78 issues, with 3.44% of its total assets invested in Apple Inc.
Tweedy,Browne Global Value (TBGVX) invests heavily in foreign securities priced attractively compared to their underlying value. The fund also purchases domestic equity securities and concentrates on acquiring instruments issued from mature markets. The global mutual fund has a five year annualized return of 4.11%.
The global mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.40% compared to a category average of 1.40%.
Virtus Global Opportunities (NWWOX) seeks capital growth. The fund invests heavily in equity-linked securities issued by companies located across the world. The fund may invest in domestic companies as well as those located in emerging markets. It aims to widely diversify its investments to reflect asset allocation in a number of countries. This global mutual fund returned 15.75% over the last one year period.
The fund manager is Matthew Benkendorf and he has managed this global mutual fund since 2009.
To view the Zacks Rank and past performance of all global mutual funds, then click here.