Images_8 Exchange traded funds (ETFs) have made investing abroad more comfortable. Looking at one-year performance, most of the top ten ETFs are emerging markets.  They include iShares MSCI Mexico (EWW), iShares MSCI Austria (EWO), iShares MSCI Brazil (EWZ) and iShares MSCI Singapore (EWS).

We talked to Donald Gold of Investor’s Business Daily about how investors should know what they’re getting into; during challenging times, foreign ETFs are more volatile. Investing abroad doesn’t ensure protection from a weak U.S. market, and a foreign markets’ decline will be harder than ours. To protect against steep losses you should sell out if an ETF breaks below its 200-day moving average or falls 8% from its peak, whichever comes first.

It’s wise to check an ETFs top holdings. Just because it says "China", it might not offer the diversification you’re looking for. For example, iShares FTSE/Xinhua China 25 Index(FXI) represents the 25 biggest Chinese companies listed on London’s Financial Times Stock Index.

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  1. You can use Yahoo Finance to get the moving averages. When you type in the ticker symbol and “get quotes” the summary page will show up for that ETF. On the left side there is a link for “technical analysis”. Click here and there will be a chart with options at the top for time frame and moving averages. Select the options you want and the chart will update.

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