It's been a terrific run, and it has made many people rich. There's no doubt that the U.S. market is fundamentally high-priced, which creates more risk. Many international funds offer more reasonable equity valuations than those found in the United States. Funds that invest abroad can also reduce your overall portfolio risk because international markets often move in different directions than the U.S. market. Plus, with the global economy on the mend after 1998's crises and many foreign nations poised to post the kind of growth not seen since the late 1980s, international funds look particularly attractive.
Foreign funds do come with risks of their own.
But there is a place for them in any portfolio. We show the top 10 performers in each group during the past three years, with the exception of developed market funds, for which we list the top 50 funds. These indices are the most widely used benchmarks by global international portfolio managers. Institute for Econometric Research Reproduction in whole or in part without permission is prohibited. Our Privacy Policy .