International assets and ETFs are a good way to diversify a portfolio. The goal is to hold assets that are uncorrelated with each other, which helps reduce overall portfolio risk. By investing globally, if one area seems some low growth, another area might make up the difference with high growth.
While Bogle’s points are well-taken, the trend for emerging markets is in place and you can’t fight it. Risk can be better managed by having an exit strategy in place to help you get out of a fund if it declines below its sell point. [Following the Trends.]
For more information on global investment opportunities, visit our global ETFs category.
Max Chen contributed to this article.