There are special risks inherent
in international investing, including currency fluctuations and political, social and economic risks.
Further, we believe that in the long run, currency fluctuations will balance out and provide a portion of the diversification benefit
of international investing.
As with any investment,
international investing carries risks, including some unique to international markets, such as currency risk or changes to economic, political, or regulatory conditions.
When you think
about international investing, it is also important to recognize the distinct characteristics of each country that makes up a foreign region.
Understanding the difference between international and global stock funds, as well as their potential advantages and risks, is an important part
of international investing.
Some
consider international investing to be a wise move, both as a way to offset weak performance at home and to take advantage of strong potential returns abroad.
This FA - IQ Education webcast is a presentation on the importance of
international investing by Rusty Vannneman, chief investment officer at CLS Investments.
Franklin Templeton pioneered
international investing over 60 years ago, and our expertise in emerging markets spans more than a quarter of a century.
International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods.
Here are six reasons I
believe international investing is a boon for investors who are willing to deal with the additional paperwork and periodic rebalancing:
Women for
Women International invests in women in conflict zones, transforming their lives by providing training in leadership, rights awareness, job skills and business in Afghanistan, Bosnia & Herzegovina, Democratic Republic of the Congo, Iraq, Kosovo, Nigeria, Rwanda and South Sudan.
It also offers employees the ability to invest in a company stock fund and three collective trusts, managed by State Street Global Advisors, that
track international investing indexes.
Yet allocating between US and international equities should hinge on a longer - term rationale, and we believe the case for
international investing remains compelling.
Filed
under International Investing, Landlording, aparthotel investments, buy - to - let properties, investing in rentals, UK real estate investing.
Using the writings from Marathon Asset Management, the author presents how a quality -
oriented international investing approach was implemented during the 2002 - 2015 period.
They
treat international investing as a free lunch, which it is not due to confiscation, currency risks, war, plague, famine, financial failure, etc..
As we believe
successful international investing can benefit from combining a global investment perspective with local presence and insights, we are leveraging fundamental research from our local asset management and emerging markets teams around the world in managing this new ETF.»
International investing requires you to deal with currency fluctuations, differing accounting procedures (that may make accurate evaluation more difficult), and foreign stock exchanges with different — usually more lax — regulations than those we're accustomed to in this country.
In a world
where international investing has become increasingly prominent, the Claymore / Zacks Country Rotation Fund (CRO) may soon find its niche.
In the article after that, I will show you how, without even venturing
into international investing, you can put together a four - fund equity portfolio that historically has outperformed the S&P 500 by more than two full percentage points, with very little additional risk.
However, the counter-argument also is true; i.e.,
international investing diversifies your currency risk — as a US investor, it provides some protection against the risk of a declining dollar.
Some of these funds also focus on high - yield holdings in other countries while others invest more broadly, but the additional risk that comes from any type of
international investing often comes with a superior yield.