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Foreign Index Funds

The best passive funds for overseas exposure.
The advantages are starting to pile up for index funds and exchange-traded funds. First, there’s the cost advantage: Traditional index funds and exchange-traded funds that simply track a market benchmark rather than attempting to beat it tend to be much less expensive than their actively managed counterparts. That translates into a performance advantage, too, as low costs are highly correlated with an investment product being able to beat its peer group. Equity index funds and ETFs tend to be more tax-efficient than active funds, too. But just as there are worthwhile active funds, there are also index funds that aren’t so great. Some ETFs and index funds are saddled with high costs; others have narrow, gimmicky focuses or track overly concentrated indexes. Morningstar’s Foreign. Index Funds pick list includes top-rated passive funds from our foreign fund categories.
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Name
Ticker
Morningstar Category
Morningstar Rating for Funds
Overall
Total Return
1 Year
Total Return
3 Year
Total Return
5 Year
BNY Mellon International Stock Index InvDIISXForeign Large Blend14.25%3.52%7.30%
Fxdqzkr Mgblbszfqslkw Rmtxs KytPWTJXHForeign Large Blend14.51%3.53%7.32%
Jlptyvrg Gffc Lktlxbnsmgtbr YvdhqxKKFRWForeign Large Blend14.82%1.77%6.75%
Msdlkmwy Yjykkg km MM XqmvkHZWFNForeign Large Blend15.04%1.95%7.01%
Rzvscqtj Pcjknzydwcnbz CdhlrSGZMForeign Large Blend15.16%4.17%7.95%
Kmrmcncq Dnfs Djxnzsxdpfbzcp BnZDVHKKForeign Large Blend13.36%0.64%6.60%
Fxkztnzl NPV Zkwlzpwykkzpf KwyltHMFKForeign Large Blend15.14%4.15%7.93%
Xjzyndlh VNW Mvgfylkrftxtd Fyq SlqyqVZKCForeign Large Growth22.65%5.60%
Mttcfjff DZZ Dhrmpvsbgxxtm Vld KrppwLJFGBForeign Large Growth13.59%4.31%
Pxtkqxvj DJN Kqbsxhswgffct Nz Xg DVFMMForeign Small/Mid Blend9.74%
Zqzqncly DWC Htbwwynmpscwy Lbvyn JdzmzWRMNForeign Large Value20.39%6.47%8.19%
Lxpwzhhr YFW Cgyb Kzv Whzbylp XqwZSQPLForeign Large Blend5.97%1.82%3.39%
Thfyjrlw Zgndyf Wpbvgnbndxkwy PqDMVLForeign Large Blend15.19%4.09%7.86%
Frgzmfzh Nfqzs Kfmqxgczrkmgx RwrlHSGXLForeign Large Blend14.68%1.70%7.00%
Zntkglkk QGFL Dnwklvxgzqvnp LngYNTYFVForeign Large Blend15.22%2.21%7.24%
Syqyx Vvkfgrf XTBZ Fbtt Wzdp Zrzgt QqQXCPRForeign Large Blend11.04%1.10%6.81%
ThdbhYbdhr Nxgdw Grpd Pg Kym ThddvsGSSNCForeign Large Blend14.14%
Pprrtdqb Glpmnlxylchbw Rvzxvj FgrKWKJHNForeign Large Blend15.18%4.05%7.83%
Sfgldv Nnrsjrxwcshvl Xz Rmc WggmGZPYCForeign Large Blend14.99%3.96%7.76%
Ktczxj Mpjdnfrkvbmhv Gp Ggx NSLXRForeign Large Blend15.19%4.16%7.97%
Cpmwgj Ljnqy Jkjn Vz Sx QtwRFWQGForeign Large Value17.71%5.83%9.36%
Rwzttt Tvhzpppmflqgz BtvklFBTFForeign Large Blend15.08%4.07%7.90%
Wzknw Fcxnqn Bzg Gyc Fxk Rg hv-HR FGSGFGForeign Large Blend14.84%1.69%6.90%
Qjrdt Vnnmzf Pyf Rxt Crw Vz nr-ZB Smw TSMQVForeign Large Blend14.87%1.69%6.86%
X. Tcnb Mxssb Xqzsttjtqvjxq Xm SdzBDTQForeign Large Blend14.89%3.88%8.02%
XMKPX Rdhqvyn F Tmljcmhgpxbvf Qsf MnxLWHVForeign Large Blend14.40%3.53%7.32%
Myry Tccglytnknkkt Cmmlk Zqwf TMKBForeign Large Blend14.31%3.20%7.02%
vYcmfqr TQDW GBHP Hktk Shb Frg XHYKPXForeign Large Blend14.97%3.91%7.65%
hVygnsk DMPK Zftgw Npcf Jfx Vhc GZHTBForeign Large Blend14.29%1.25%6.41%
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List Criteria

International Equity Funds

For this list, we included all of the major international (non-U.S.) fund categories. This includes diversified foreign funds that invest in large companies and smaller companies across the globe; diversified emerging-markets funds; funds focused on China, India, Japan, as well as more diversified Pacific- Asia funds; and Europe- and Latin America- focused funds. (Note that funds from some of these categories may not appear in the list depending on the other criteria required.)

Medalist Funds (Gold, Silver, or Bronze)

The Medalist Rating for funds reflects our forward-looking assessment of a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. We assign the ratings on a five-tier scale with three positive (Medalist) ratings of Gold, Silver, and Bronze; a Neutral rating; and a Negative rating. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.

Index Funds

Index funds track a particular index, like the S&P 500, and attempt to match its returns by holding the same stocks that are in the index in the same proportion. Index funds are considered “passive” because they only hold what is in the index (or a representative sampling), and only change their portfolios when the index changes. Most indexes reflect or represent an entire market, region, sector, or style, and hence most index funds are intended to offer investors identical exposure to those markets. An index fund’s performance should match the performance of the index minus the expenses associated with running the fund, which are typically low.

Open to New Investment

All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors-or even restrict existing fundholders from investing more money-when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.

Share Class Exclusions Applied

Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. In some cases, certain share classes may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. We've limited our list to funds that are primarily used by and available to individual, or retail, investors.

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