Most investors already have a stake in the global economy--they just don't realize it.

Consider the two most popular mutual funds: Fidelity Magellan and Vanguard 500 Index. Magellan's top holdings are General Electric, which generates a third of its sales outside the United States, and Citigroup, which operates banks in 101 countries. Among Vanguard 500's biggest investments is Wal-Mart. Though associated with small-town America, more than 1,080 of the discounter's 4,000-plus stores are overseas. "Just about any big blue-chip company is going to give you exposure to a huge number of markets and economies outside the U.S.," says Morningstar analyst Russel Kinnel.

But if you're looking for more of a pure play on the global economy, there are several options. The first is a niche group of funds that focus exclusively on multinationals, such as U.S. Global Leaders Growth and Fidelity Export & Multinational.

U.S. Global Leaders has beaten the S&P 500 five of the past six years by focusing on dominant global companies with loyal customer bases. "People will routinely buy Colgate toothpaste or Starbucks coffee or Gillette razors, or shop at Wal-Mart," says comanager George Fraise. Repeat business creates stability of earnings, while global presence signifies a company's strength and ability to grow. Fidelity Export & Multinational is a rarity in the fund world. It has never had a losing year since it was launched in 1994. Part of its success lies in its flexibility. It can invest in stocks of all sizes and styles--just as long as they're poised to benefit from growth of the global economy. Among its top picks are Cardinal Health, Avon Products, and Computer Associates. Healthcare, consumer products, and information technology "are the three places with the biggest percentage of sales coming from outside the U.S.," says manager Douglas Chase.

Like U.S. Global Leaders, Export & Multinational focuses primarily on U.S.-based multinationals. Why? "If I invest directly in a European company, I have to worry about what the euro is going to do against the dollar as well as how the foreign stock market is going to do versus the U.S. market," says Chase.

Tweedy, Browne Global Value gets around "currency risk" by hedging against it. Whenever the foreign stock fund buys a stock overseas, it sells the equivalent value of that currency, dampening volatility. And by investing in companies trading at deep discounts to their breakup value, the fund has posted average annual returns of 12.2 percent for the past five years.

If you don't mind currency risk and want exposure to foreign-based multinationals, stick with large-capitalization international stock funds. The biggest holding in Artisan International, for instance, is Diageo, the British conglomerate that owns Burger King and Johnnie Walker scotch. Fidelity Diversified International is betting on Dutch grocer Royal Ahold, which operates several supermarket chains throughout the United States.

And if you're willing to take on more risk by dabbling in the emerging markets, consider American Funds New World, which owns foreign multinationals like South Korea's Samsung alongside American stalwarts PepsiCo and Coca-Cola.

Better stay home

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Overseas stock returns often lag behind the S&P 500.

S&P 500

MSCI EAFE*

1998; 1999; 2000; 2001; Jan. 2002

MSCI EAFE is short for Morgan Stanley Capital International's Europe,