For the past three years, through August, Morningstar’s world stock category of mutual funds returned nearly 14% a year while the funds in the international equities category had annualized returns around 10%. The reason for the wide disparity? World stock funds (also called global stock funds) include some U.S. stocks, which returned well over 17% a year in that period, far better than funds holding only foreign stocks. The superior results from the U.S. positions pushed up returns for global funds.
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