Many investors only buy U.S.-based stocks or funds because its comfortable to stick with the companies we know.
Investors who only invest in the United States could be missing out on half of the worlds investment opportunities.
Dont bother buying too many funds.
No Interest Til Almost 2027?
Brokers may also layer on transaction fees and even wrap fees.
Expensive funds arent better than lower cost funds.
In fact, the higher the expenses, the lower the returns youre likely to get.
Some international exchange traded funds offered by Vanguard charge as little as one twentieth of 1 percent per year.
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3.
Buy an Index Fund
Did you see an ad for a stock fund with killer performance?
Dont get too excited.
You cant be sure those results are due to skill.
Those higher costs drag down performance.
But even before charges are deducted, two thirds of fund managers still didnt outperform.
Index funds dont take a stab at beat the market.
Their objective is to match the performance of their benchmark.
Because mirroring an index isnt hard to do, index funds compete on price.
She highlighted the possibility of restrictions being placed on trading in a specific country due to political conflicts.
Currency risk is another.
Have you taken any trips overseas?
If so, you probably understand currency risk.
Fund companies classify countries by how risky they are.
Russia, India, China, Thailand and Latin America are emerging markets.
These frontier markets are best left to specialists.
Are International Stocks Right for You?
But unless you plan to become a foreign policy expert, keep it simple.
Find a broadly diversified index fund with low expenses, then simply buy and hold.
