An international stock fund is an investment vehicle holding a collection of stocks from non-U.S. countries.
International Stock Fund
What is an international stock fund?
- An international stock fund is an investment vehicle holding a collection of stocks from non-U.S. countries.
- Some international stock funds focus on developed markets (United Kingdom, Germany, or Japan), emerging markets (China, India, or Brazil), or a combination of both.
- Many asset-allocation researchers suggest having international stocks in a diversified portfolio.
International stock funds are effective at diversifying a portfolio’s stock exposure. Some funds focus on developed markets (United Kingdom, Germany, or Japan), emerging markets (China, India, or Brazil), or a combination of both. These funds take advantage of global-opportunity stocks and diversify across many currencies.
Most researchers agree that international stock funds are core holdings in a portfolio. However, there is much debate on how much exposure investors should have in foreign equities. Skeptics argue little to no exposure, while advocates suggest up to 50% of a portfolio’s stock exposure should be international.