Get International Diversification With These 3 Funds

When allocating the equities in a portfolio, it is important to look beyond just the shores of the United States. Not all asset classes always move in tandem, so diversification is critical to smooth returns.

In addition, the factors driving growth differ across markets. For example, natural resources are key industries in Canada, Russia and Australia. China is known for its rapid shift to a more capitalistic and industrialized economy, driven by exports.

A problem, however, is that it is not possible to accurately guess which regions will lead or lag in any given calendar year. Research from the University of Chicago and Dimensional Fund Advisors, among others, has shown this.

Funds are an easy vehicle to add an international allocation without placing specific country or regional bets.

Related Link: Japan Focused Funds Show Divergent Performance

Oberweis International

The Oberweis International Opportunities OBIOX invests at least 80 percent of net assets in companies outside the United States. That includes not only companies headquartered or listed overseas, but also companies that derive at least half their revenue outside the United States.

The top sector represented is industrials, followed by consumer cyclical and technology.

The fund's one-year total return is 3.49 percent.

Dodge & Cox Global

The Dodge & Cox Global Stock Fund DODWX invests at least 40 percent of total assets in non-U.S. companies, with 80 percent of its investment dollars going into common stocks, preferred stocks and convertibles. The fund's focus is on mid- and large-cap companies.

Technology, financial services and healthcare are the most heavily represented sectors. The fund's one-year total return is 7.67 percent.

Hartford Global

The Hartford Global Growth HLS Fund Class IA HIALX invests at least 65 percent of its assets in common stocks of companies throughout the world. The fund may invest up to one-quarter of assets in emerging markets.

Technology, healthcare and financial services are the top three sector holdings. Its one-year total return is 13.3 percent.