Stock market

3 Market Beating International Investment Funds for Stocks and Shares ISA

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I believe that a Stocks and Shares ISA is the best option for UK investors to get the most out of their money. Not only can they choose the assets they want, but they can invest up to £20,000 a year. This can add up to overall savings in the long run!

Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided for informational purposes only. It is not intended to be, nor does it constitute, any tax advice. Readers are responsible for doing their own due diligence and seeking professional advice before making any investment decision.

Naturally, choosing the right stock is not that easy. It takes a lot of research time to get it right. And this is where the magic of mutual funds comes in. For a small fee, an investment trust is managed by professionals who have all day to research and pick the best mix of stocks.

With that in mind, I’ve tracked down three investment trusts from around the world that have outperformed. S&P 500 in the last five years.

Compared to the S&P500 Stocks and Shares ISA Trust
Created on TradingView.com.

The best in Europe?

70.3% growth in last five years, Blackrock Greater Europe Investment Trust (LSE:BRGE) is just throbbing. S&P 500. That’s because it focuses mostly on European stocks that don’t perform as well as their American counterparts. However, the fact remains that it has maintained parity with the S&P 500.

The fund provides exposure to European industry leaders such as pharma giants. Novo Nordisk and semiconductor manufacturer ASMLAs with global luxury brands The fugitive And LVMH.

However, some believe that the EU’s economic growth is limited by high labor costs and a very strict regulatory environment. While this helps reduce volatility, it also results in reduced productivity. S&P Global Eurozone GDP forecasts were recently cut to 1.3% in both 2025 and 2026 from 1.5% and 1.4% respectively.

The largest market in the world

82.9% growth in last five years, India Capital Growth Fund (LSE:IGC) is doing slightly better than the S&P 500. As the world’s most populous country, India is an often overlooked opportunity for UK investors. Yet its stock market has outperformed the majority of developed and emerging global markets over the past two decades.

The fund provides exposure to the country’s leading businesses, although there are many that are not widely heard of outside the country. It is weighted by financials (22%), consumer discretionary (21%), industrials (14%) and materials (14%).

However, without diversification outside the country, it will be heavily affected by a downturn in the local economy. It is working well so far but there is no guarantee that the economy will continue to grow. The country’s top talent tends to migrate abroad, leaving local businesses struggling to retain a skilled workforce.

The booming US tech industry

106.2% growth in last five years, Polar Capital Technology Trust (LSE:PCT) has been significantly outperforming the S&P 500. That’s most likely because it’s focused only on high-performing tech stocks like the S&P 500. Nvidia, Apple And Microsoft. Thus, it provides exposure to all the best bits of the index without the lower-ranked stocks bringing down the overall average.

At the same time, it lacks the kind of diversification that is important during market downturns. Tech stocks tend to consolidate when things go south, so this fund is prone to high volatility and sudden falls. To avoid this risk I would balance the fund myself with other funds in an ISA.


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