I understand the concern...typically you would expect international funds to hit in the 35-45% range although 25% isn't all that bad. However, perhaps the funds that do achieve these kinds of returns are more heavily weighted in emerging markets such as India and China?? I would look at the holdings and where the bulk of the portfolio is geographically. Markets such as these assume more risk as you already know. Therefore it is not safe to assume that just because a fund is international that returns must be astronomical- the key is knowing each market and the balance of risk and reward.