Looking for a new adventure? Consider investing in international investments.* Foreign investments add another level of diversification** to your portfolio. Overseas markets often perform differently than U.S. markets due to varying economic conditions. Including international investments in your asset mix may help cushion your portfolio when domestic securities are weak.

A fairly simple way to invest internationally is to invest in mutual funds*** that hold foreign investments. Some funds hold securities from a variety of countries, while others hold investments from a specific region or country.

Follow a Map

The international funds you choose should depend on your investment goals and risk tolerance. Your options may include:

  • Global funds — Also known as world funds, these investments hold both foreign securities and U.S. stocks or bonds.
  • International funds —Also known as overseas funds, these funds invest in stock or bond markets in countries outside of the U.S.
  • Regional fundsThese funds invest in markets in countries in a specific geographic region, such as Europe or the Pacific Rim.
  • Country funds These hold investments in a specific country.

Recognize Risk

All investing involves risk. Investing internationally involves a number of risks, including:

  • Market risk Foreign financial markets tend to be smaller and less developed than U.S. markets. Foreign markets, especially emerging markets, are vulnerable to political and economic uncertainties and the possibility that investors may overreact to unexpected events. In addition, foreign markets may not be subject to the regulatory oversight that governs U.S. markets and companies.
  • Currency riskThe value of the U.S. dollar abroad can affect the value of your foreign investments. If the U.S. dollar rises compared to a foreign currency, the return on an investment in that country’s stock market is reduced when it’s converted back into U.S. dollars.
  • Political risk — Government changes and civil unrest could have a negative impact on a country’s investment market.

Keep in mind that the domestic mutual funds you already invest in may include overseas investments. Check your existing exposure to foreign markets before adding any new international investments to your portfolio. Your financial professional can help you decide whether adding international investments to your portfolio makes sense for your particular situation. The Emerj360 team is here for your questions. Click HERE to book a conversation.

* The risks of investing internationally include changes in currency rates, foreign taxation, differences in auditing and financial standards, and other risks.

** Diversification does not ensure a profit or protect against loss in a declining market.

*** You should consider the fund’s investment objectives, charges, expenses, and risks carefully before you invest. The fund’s prospectus, which can be obtained from your financial representative, contains this and other information about the fund. Read the prospectus carefully before you invest or send money. Shares, when redeemed, may be worth more or less than their original cost.

Written By  Brett Sebion, Financial Coach
How to Choose the Right Financial Advisor
Heather Jordan  – August 08, 2023
Planning for your financial future can be a difficult task to do alone. Whether you are looking to invest in the stock market, planning for retirement or are simply looking to grow your wealth, seeking advice from a financial professional, often called a financial advisor or financial planner, is a great way to feel confident […]
Keep Reading
Preparing for Rising College Costs: Start Early and Save Often
Heather Jordan  – July 26, 2023
The skyrocketing cost of college education has become a growing concern for students and families across the U.S. As tuition continues to rise, it is crucial to adopt a proactive approach to prepare for this financial challenge. In 2022-23, average budgets (tuition and fees, room and board and allowances for books and supplies, transportation and […]
Keep Reading
Controlling Risk When Investing Near Retirement
Brett Sebion, Financial Coach  – July 16, 2023
Managing investment risk takes on added importance for investors nearing retirement. Within a few years of retirement, you’ll want to pay close attention to the different types of investment risks you face, and develop strategies for protecting the hard-earned money you’ve saved towards retirement. Assess Your Comfort Level Risk tolerance is the ability and willingness […]
Keep Reading

What are you waiting for?

Everything we do boils down to this: by doing what is best for you, we do what’s best for our company. Helping you build financial security and plan for retirement so you can look forward enjoying life.
Open Account right-arrow-dark Sign Up Now right-arrow-dark