Top International Stock Funds in DC Marketplace (2013)

We are pleased to announce the 2013 list of the Top 20 International Stock Funds in the defined contribution industry.

“Maintaining diversification is essential to the health of any portfolio,” said Brooks Herman, Head of Data & Research at BrightScope. “Traditionally, international equities offer returns that are less correlated with domestic equities, which improves the risk/return profile of a portfolio.”

Noteworthy findings since BrightScope’s last release of this list (September 2011):

  • Top four hold strong – American Funds EuroPacific Growth, Fidelity Diversified International, Dodge & Cox International Stock, Vanguard International Growth all maintain their respective positions as #1-4 on the list
  • The returning funds proved their long-term viability, as Harbor International moved from #9 to #6 and Vanguard Total International Stock Index went from #7 to #5, showing either growth and consistency for all top six funds
  • Newcomers dominate the second half of the list, making up the entire list from #7 to #20
  • Four funds have dropped off the list since 2011 – American Funds New Perspective, SSgA EAFE Index Fund, Artio International Equity, and TIAA-CREF Global Equities

The Top 20 International Stock Funds by total distribution include:

1 American Funds EuroPacific Growth
2 Fidelity Diversified International
3 Dodge & Cox International Stock
4 Vanguard International Growth
5 Vanguard Total International Stock Index
6 Harbor International
7 Thornburg International Value
8 BlackRock EAFE Equity Index Fund
9 Northern Trust EAFE Index
10 Fidelity International Discovery
11 Fidelity Spartan International Index
12 Vanguard Developed Markets Index
13 Templeton Foreign
14 Janus Overseas
15 Aberdeen Select International Equity
16 Artisan International
17 Principal Diversified International
18 Wells Fargo International Equity Index
19 Vanguard International Value
20 Morgan Stanley Institutional International Equity

This list is part of a series of rankings BrightScope will regularly publish to provide investment managers, mutual fund companies, investors, and others with more insight into the top funds and managers in the retirement marketplace. The proliferation of this critical information will dramatically increase the efficiency of the field and lead to lower cost plans and better outcomes for the 60 million Americans who depend on their 401k plan for retirement.

Since its infancy, the 401k marketplace has suffered from a lack of quality data that is comprehensive enough to be useful for most strategic functions. Historically, it has been virtually impossible to determine a specific mutual fund’s total distribution in 401k plans. BrightScope’s revolutionary database includes a detailed investment menu on nearly 50,000 plans, representing nearly 90 percent of all the assets in 401ks. With this dataset, BrightScope is able to provide detailed analysis of total fund distributions.

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