As more advisors say a portion of a portfolio should be invested in foreign companies, investors are looking for ways to do just that. International exchange traded funds are one way of offering global diversification in an easy way, without having to understand reporting and currency of individual companies.
In fact, international ETFs have grown faster than domestic ETFs, with assets nearly doubling to $82.8 billion in the past 12 months. There are currently 63 global equity ETFs. The international ETFs are more popular than international mutual funds. About 26% of money invested in ETFs are in international ETFs, versus 21% of mutual fund investments. The lower expense ratios, easy trading and wide range of options help ETFs.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.