Vanguard Tax-Managed International (VTMGX). As its name suggests, the fund takes special care to minimize taxes. It's run like an index fund, but management will, at times, make changes for tax purposes. Management also trades infrequently to keep trading costs low. (The fund's turnover ratio is just 9 percent.) The portfolio is heavily weighted in Japan and developed countries in Europe. Over the past decade, the fund's 4 percent annualized return lagged its peers somewhat because of its lack of exposure to emerging markets. Its annual fees are 0.20 percent.
Corrected on 12/16/10: An earlier version of this story misstated the return of the average foreign large-blend fund. The return was a half of a percentage point lower than the MSCI EAFE Index.