International Growth: Oakmark International
Global equity markets have seen tough times in recent years, with China in particular underperforming domestic indices like the S&P 500. However, if you’re a longer-term investor worried about making sure you find the right investments over the next decade instead of the next few months, you should strongly consider investing in international growth. After all, the idea is to buy low and sell high — not wait until the rally then buy at the top.
One of the best international growth opportunities for 401k investors right now is the Oakmark International (MUTF:OAKIX) fund. This mutual fund has a lifetime return of over 10% annually, a five-star ranking from Morningstar and an impressive $9 billion under management.
Since this is a “blend” fund that mixes both value and growth plays, there is some stability here via some international blue chips like Daimler AG, Credit Suisse (NYSE:CS) and Canon (NYSE:CAJ). So don’t think you’ll be taking a Hail Mary on the next Chinese startup with this fund. Manager David G. Herro has been with the fund since 1992, and that kind of international equity experience is crucial to understanding global markets.
The expense ratio is a reasonable 1.06%, meaning you pay $106 for every $10,000 invested.