Navigate Overseas Investing With Low-Volatility Funds

Foreign stocks have taken investors on a harrowing ride in recent years. That has left many investors believing that the risk in international markets outweighs the reward. But a growing number of funds that focus on low-volatility stocks offer wary shareholders a low-risk way to approach these uncertain markets.

Chances are you're light on international stocks, given the long bull market in U.S. stocks. The average American stock portfolio holds 30% in foreign stocks, says Fran Kinniry, head of Vanguard's investment strategy group. But international firms make up half of the world's total market value. And, Kinniry says, many investors don't own any international stocks. "We'd rather see more of those investors put their toe in the water and boost their foreign stock exposure to 10% to