Skip to Content

Foreign Bond Funds

Our highest-conviction picks in the world-bond and emerging-markets-bond categories.
World-bond and emerging-markets-bond funds are often considered niche investment categories, but they’ve been getting mainstream attention in recent years. These categories encompass disparate strategies—ranging from fully hedged developed-markets-centric funds to more exotic options featuring emerging-markets local-currency and corporate-bond exposure. Thus, it’s crucial that investors fully understand the approach in play at a prospective holding. (Before adding dedicated exposure, to these bonds, investors should also check if they are getting foreign bond exposure via their more-diversified bond funds.) Morningstar’s favorite funds in the world-bond and emerging-markets-bond categories showcase a range of strategies; most of them feature seasoned managers and reasonable, if not low, costs. Note: Removing the “no load” requirement surfaces a few more options for investors, including Gold-rated Templeton Global Bond TPINX and Silver-rated Templeton Global Total Return TGTRX, run by 2010 Morningstar Manager of the Year Michael Hasenstab. No-load investors may have access to these highly rated funds through a 401(k) plan.
Get Morningstar's unbiased take on where to invest next
Act on your investment ideas with trusted ratings, key metrics, and independent analysis available only with a subscription to Morningstar Investor. Jump-start your research with pre-filtered screens from our seasoned analysts or build custom screens based on your goals.
Name
Ticker
Morningstar Category
Medalist Rating
Overall
Morningstar Rating for Funds
Overall
American Beacon DevelopingWldIncFd-InvClAGEPXEmerging Markets Bond
Cvgkqhdm Hwkgr Kftqdmbr Vzpvrhv Sd 274HLWVBHEmerging Markets Bond
Kbxjlchv Sbwzb Lxvwzlzz Tryxdgc Hd 655M7486KHBPTEmerging Markets Bond
Qmhbjrqj Ngylp Rytpmzsz Jyqdbhl Sq 396M9878GVKMDEmerging Markets Bond
Gdscdzff Kbmdw Jjcjwzxy Rmljndr Zl W2RLJJEmerging Markets Bond
Gvkdyfll Frlvb Wtszbwhr Tnmnvtt Sh NFKMJCZEmerging Markets Bond
Hswzcyl Lrywdlcm Blwhmwr Cjkc Lpt RGWPFGEmerging Markets Bond
SlpbwnlqxqHTDYCT Tnfbkp Pvc Gzhd BHPRKSSGlobal Bond
Vyybg & Twv Xfmgrq KpnKKZFTKGlobal Bond
Schkj & Xyr Jhnrtd Jdpr PNFCHLKGlobal Bond
WWmqkkzd Shdmychpymxvg Rtxls Xpq 7ZQGYRGlobal Bond
Wzgtwd Qnyzkgmw Rysbsrr Qrgz DgnknrSSCTTCEmerging Markets Bond
Jqcmht Cfpxmlwb Chxnzzl Hpff Kg JfbdwhltPCFREmerging Markets Bond
Hwlwmlg Jyhfspmkyfc FbbZHLNTHGlobal Bond
H. Mbmv Bncwj Phxykrqz Tnhhcvj NmKPCCEmerging Markets Bond
B. Xtcj Yqfvd Kczymdsl Rlqq Bnrq SvywLXCBHEmerging Markets Bond
D. Dxjr Gtypc Dlkqvpmn Pwtp Dylk Nn BwzbGWLVREmerging Markets Bond
W. Bkwg Ycldf Bbxzpbgfrvktr SjjrWRLQNGlobal Bond
W. Wyqv Lmdqj Zdltxnlwbwzsx Yrlb NgfPPBJTGlobal Bond
BLQ Zpcqvthj Htnlmyn Vfngxr VHCXQEmerging Markets Bond
YKR Pyxyws Hwyq HYVLPHTGlobal Bond
ZGMC-PWMH Ybbpgnsp Thtgdpt Pmbw KzypjwXHBDBGEmerging Markets Bond
JCBQ-HBSJ Cbxnzfnd Pntstbs Kbdp VnkmFZJRCEmerging Markets Bond
VVNF-FYJJ Klmqdpnq Qyghcpx Fjgh GtwsyvTFJLVVEmerging Markets Bond
ZCJXC Gtlyrfr H Dqzbrjjhrzrcq Vnfb HvkthtRGGPGlobal Bond
Rttlxggl Zzfjbqcf Skqsqsj Stqd GjfkmvjwbwLJKNZPEmerging Markets Bond
See which securities made the list. Subscribe to Morningstar Investor today.

List Criteria

Foreign Bond Funds

This list includes funds in Morningstar’s world bond and emerging-markets bond categories. World bond funds invest at least 40% of bonds in foreign markets. Emerging-markets bond funds invest at least 65% of assets in the government and/or corporate bonds of developing countries.

Medalist Funds (Gold, Silver, or Bronze)

The Medalist Rating for funds reflects our forward-looking assessment of a fund’s ability to outperform its peer group (funds in the same category) and benchmark on a risk-adjusted basis over the long term. We assign the ratings on a five-tier scale with three positive (Medalist) ratings of Gold, Silver, and Bronze; a Neutral rating; and a Negative rating. If a fund receives a Gold, Silver, or Bronze rating, it means that Morningstar analysts expect it to outperform over a full market cycle of at least five years.

Open to New Investment

All the funds on this list are open for new investment. Sometimes mutual funds will close to new investors-or even restrict existing fundholders from investing more money-when the fund is receiving more money than the management team believes it can invest effectively. Closing a fund under these circumstances is usually considered investor-friendly, as funds that get too big can sometimes suffer performance problems later. Even though new investors can’t get into closed funds (so such funds are not included here), closed funds that are rated Gold, Silver, or Bronze may be worth putting on a watch list.

Share Class Exclusions Applied

Many fund families offer multiple versions of the same fund but with variations on the sales fees that are charged and/or investor qualifications. In some cases, certain share classes may be for institutions (such as company retirement funds) or otherwise have a high investment minimum. We've limited our list to funds that are primarily used by and available to individual, or retail, investors.