NEW YORK (TheStreet) -- With much of Europe stuck in recession, investors have reason to be wary about international funds. More bad news from the eurozone could send markets reeling. But at a time when the outlook for the U.S. economy is uncertain, it is important to be globally diversified.
To limit the risk of foreign investments, consider low-volatility ETFs that have proven relatively resilient during downturns. Top choices include iShares MSCI EAFE Minimum Volatility Index , iShares MSCI EAFE Growth Index , and PowerShares International Dividend Achievers Portfolio .
A particularly steady performer is iShares MSCI EAFE Minimum Volatility. The ETF demonstrated its value in the second quarter of this year when concerns about the European crisis sank foreign stocks. During the period, the MSCI EAFE index -- a popular foreign benchmark -- dropped 7.1%, but the Minimum Volatility fund only declined 1.0%, according to Morningstar. ...Click to view a price quote on EFAV. Click to research the Financial Services industry.