Non-U.S. mutual funds provide excellent choices for those looking to diversify their investment across a wide range of foreign countries, including both emerging and developed nations. Thus, investing in non-U.S. mutual funds may prove profitable and investors may find non-U.S. mutual funds more attractive than those with significant domestic exposure.

Below we share with you three top-ranked non-U.S. mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. 

Vanguard International Explorer Investor (VINEX - Free Report)  invests primarily in equity securities of small-cap companies based in countries outside the United States that an advisor expects to offer capital growth potential. VINEX seeks growth of capital for the long run. The fund has multiple investment advisors. Vanguard International Explorer Investor has one-year annualized returns of 5.5%.

Simon H. Thomas has been one of the fund managers of VINEX since 2010.

Vanguard International Growth Investor (VWIGX - Free Report) invests predominantly in stocks of companies located outside the United States. These companies are expected to diversify its assets in countries across developed and emerging markets. Vanguard International Growth Investor has one-year annualized returns of 11%.

As of June 2018, VWIGX held 136 issues with 5.10% of its assets invested in Alibaba Group Holding Ltd ADR.

Oppenheimer International Small-Mid Company Y (OSMYX - Free Report) seeks growth of capital. The fund invests the majority of its assets in equity securities of small and mid-cap companies. OSMYX invests in those companies whose market cap is similar to those that are within the range of the MSCI All Country World (ACWI) ex-U.S. SMID Index. Oppenheimer International Small-Mid Company Y has one-year annualized returns of 19.6%.

OSMYX has an expense ratio of 1.14% compared with the category average of 1.48%.