Foreign Small-Cap Funds Are Too Cheap to Ignore

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After last year’s bear market, U.S. small-cap stocks look inexpensive. Foreign small-caps look even cheaper.

These stocks are a “slam dunk,” says Ryan Myers, co-manager of the Causeway International Small Cap fund (ticker: CVISX). He points out that the MSCI ACWI ex USA Small Cap Index trades at a price/earnings ratio of 12.2 versus the MSCI US Small Cap Index’s 17.3. Myers’ fund, which focuses on undervalued small-caps, has a P/E of 5.9.