Feedback
  • Account Access
  • Contact Us

    Advisor Sales Support

    Mutual Funds and ETFs - 800-456-7526
    Monday-Thursday: 8:00 a.m. – 6:00 p.m. ET
    Friday: 8:00 a.m. – 5:00 p.m. ET

    ETF Trading Support - 415-315-6600
    Monday-Friday: 9:30 a.m. – 5:00 p.m. ET

    Investor & Website Support
    888-843-7824
    Monday-Friday: 9:00 a.m. - 6:00 p.m. ET

  • Advisor Log In

Client Conversations: US and International Markets Have Moved in Cycles

November 2018

US equity outperformance versus international equity outperformance has historically been cyclical.

Client Conversations gives financial advisors an easy way to communicate with clients on topics influencing financial markets; it highlights common investor behaviors and offers ways to address the challenges investors face. Share this article with your clients, and remember to follow your firm's policies that govern sharing content with clients and prospects.


While we hope US stocks continue to perform well, history suggests that international stocks may soon have their day in the sun. Since 1970, the outperformance cycle for US versus international stocks has lasted an average of 7.3 years. We’re currently 7.6 years into the current cycle of US outperformance, which suggests the tides may be getting ready to turn.

 

US Equity vs. International Equity 5-Year Rolling Returns (1/1/1970-9/30/2018)  

The chart shows the values of the S&P 500 Index’s returns minus the MSCI World ex USA Index’s returns. When the line is above 0, domestic stocks outperformed international stocks. When the line is below 0, international stocks outperformed domestic stocks.

Data Source: Morningstar; Calculations: Hartford Funds, 10/18.

Performance data quoted represents past performance and does not guarantee future results. The performance shown above is index performance and is not representative of any Hartford fund’s performance. Indices are unmanaged and not available for direct investment.

US equity is represented by S&P 500 Index; International equity is represented by the MSCI World ex USA Index. Please see below for representative index definitions. For illustrative purposes only. 

 

Morningstar 4- & 5-Star Global and International Equity Funds* 

September 30, 2018

  Class I Ticker Morningstar Category Overall Rating Cat. Size 3 Year Rating Cat. Size 5 Year Rating Cat. Size 10 Year Rating Cat. Size
Global/International Equity Funds                    
Hartford Emerging Markets Equity HERIX Diversified Emerging Mkts ★★★★ 708 4 708 4 508 - -
Hartford Schroders Emerging Markets Equity SEMNX Diversified Emerging Mkts ★★★★ 708 4 708 4 508 4 218
Hartford International Equity HDVIX
Foreign Large Blend ★★★★ 655 4 655 4 535 4 379
Hartford Schroders Intl Multi-Cap Value SIDNX
Foreign Large Value ★★★★★ 276 4 276 4 225 5 146
Hartford International Opportunities IHOIX
Foreign Large Blend ★★★★ 655 2 655 4 535 4 379
Hartford Schroders International Stock
SCIEX
Foreign Large Blend ★★★★ 655 4 655 4 535 4 379
Hartford Multifactor Developed Markets (ex-US) ETF RODM Foreign Large Blend ★★★★★ 655 5 655 - - - -
Hartford Multifactor Global SmallCap ETF
ROGS
World Small/Mid Stock ★★★★ 114 4 114 - - - -

Talk to your financial advisor today about the allocation to international equities that’s right for you

Client Conversations gives financial advisors an easy way to communicate with clients on topics influencing financial markets; it highlights common investor behaviors and offers ways to address the challenges investors face. Share this article with your clients, and remember to follow your firm's policies that govern sharing content with clients and prospects.


* View the full list of Hartford Funds

Performance data quoted represents past performance and does not guarantee future results. Other share classes may have different ratings. The Morningstar RatingTM for funds, or “star rating”, is calculated for funds and separate accounts with at least a 3-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. Star rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance (without adjusting for any sales load, if applicable), placing more emphasis on downward variations and rewarding consistent performance. 5 stars are assigned to the top 10%, 4 stars to the next 22.5%, 3 stars to the next 35%, 2 stars to the next 22.5%, and 1 star to the bottom 10%. Overall Morningstar Rating is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. For more information about the Morningstar Fund Ratings, including their methodology, please go to global.morningstar.com/managerdisclosures. © 2018 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/ or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.

MSCI World ex USA Index captures large and mid cap representation across 22 of 23 developed market countries—excluding the United States. MSCI performance shown is gross of dividend withholding tax.

Investors should carefully consider a fund’s investment objectives, risks, charges and expenses. This and other important information is contained in the fund’s prospectus and summary prospectus, which can be obtained by visiting hartfordfunds.com. Please read it carefully before investing.

Important Risks: Investing involves risk, including the possible loss of principal. • Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political and economic developments. These risks may be greater for investments in emerging markets.

CCWP014 209135