If you've been aggressive with your foreign mix, you've most likely been drawn to mid- and small-company foreign stocks, or emerging-markets stocks. Though both offer the promise of big returns, both are very volatile.
To curtail volatility in your foreign position, focus on large international companies that are domiciled in developed markets. They may not have the same growth potential as smaller companies or emerging-markets stocks, but they don't have the same volatility, either.
Find ideas by using an online fund screener. For example, we set Morningstar.com's Fund Screener with the following inputs: Fund Group = International Stock; Morningstar Category = Foreign Large Blend; Morningstar Star Rating = 4, 5; and Average Market Cap Greater than or equal to $10 billion. You can change the inputs to narrow the search further.
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