On the other hand, investors can find broad emerging market exposure through ETFs like the iShares MSCI Emerging Markets ETF (NYSEArca: EEM).
Looking at the emerging markets, investors have taken an interest in China, the world’s second largest economy. Recently, Deutsche Bank launched the db X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR), which allows investors to directly access Chinese A-shares stocks, which trade on Chinese exchanges. [DB Plans Expansion of China A-Shares ETFs]
While investing in global markets diversifies an investment portfolio, investors will also have to weigh the risks. Specifically, currency risks.
Foreign equity exposure will come with foreign currency exposure – foreign stocks are denominated in the local currency. Consequently, potential investors should be aware that a depreciating foreign currency or strengthening U.S. dollar could hurt returns in a foreign investments.
Financial advisors interested in attending the annual virtual summit on January 15 can register at ETF Virtual Summit registration.