{"id":99,"date":"2021-12-07T21:41:16","date_gmt":"2021-12-07T21:41:16","guid":{"rendered":"https:\/\/investorimpactlab.com\/?p=99"},"modified":"2022-01-04T22:01:42","modified_gmt":"2022-01-04T22:01:42","slug":"best-international-etf","status":"publish","type":"post","link":"https:\/\/investorimpactlab.com\/best-international-etf\/","title":{"rendered":"10 Best International ETFs to Buy"},"content":{"rendered":"\n
Diversifying your investment portfolio helps to reduce risk and protect your portfolio against losses during market downturns. And what better way to ensure diversification than by investing in international assets? This article discusses the 10 best international ETFs to buy. The recommendations I offer in this article comprise bonds and stocks and emerging and developed markets.<\/p>\n\n\n\n
Whether you are a veteran or a newbie investor, chances are you have read about international exchange-traded funds (ETFs). You may even have a shortlist of some of these stocks and bonds you find interesting during your research.<\/p>\n\n\n\n
International exchange-traded funds (ETFs) primarily invest in foreign-based securities. They may also hold equities or fixed-income securities, focusing on a specific country, region, or worldwide. I classify ETFs as developed markets and emerging markets based on the regions or countries.<\/p>\n\n\n\n
If an ETF invests in the stocks or bonds of less developed countries, like Russia, Mexico, South Africa, Egypt, China, and India, they are known as emerging markets ETFs. Conversely, if the investment is in the stocks and bonds of countries like France, Canada, Japan, Australia, or the United Kingdom, they are developed markets ETFs.<\/p>\n\n\n\n
The U.S. stocks do not offer a fair representation of the global stock market. Limiting yourself to these stock options excludes you from several exciting investment opportunities. You would be missing out on the largest electronic, telecommunication, and automotive companies, all of which make up the international emerging markets.<\/p>\n\n\n\n
Diversification is the beauty of investment. Considering no one can say which country\u2019s stocks or bonds will perform best at any particular time, having as many international options as possible puts you in a very good position. The potential upsides outweigh the possible downsides.<\/p>\n\n\n\n
You may want to argue that most U.S. stocks have outperformed their international competitors over the past few decades. But in reality, these performances are attributed to increasing price multiples<\/a> rather than better business fundamentals. In simple terms, these stocks become more expensive \u2013 they did not necessarily arrive at higher profits.<\/p>\n\n\n\n