Are international mutual funds and ETFs a good idea? This video highlight summarizes the thoughts of two Vanguard professional fund managers
International Mutual Funds and ETFs – Video Highlights of Interview with Andrew Patterson and Scott Donaldson
- Diversifying investments across different countries and regions reduces investment volatility
- Different ebbs and flows of investment returns in different countries reduces overall portfolio volatility
- This philosophy applies to both equity and stock markets
- Investing internationally is more expensive than investing domestically
- These portfolio managers recommend that at least 40% of equities and 30% fixed income be invested outside the U.S.
- This can be accomplished by investing in international mutual funds or international ETFs
Check out these related videos at Vanguard:
- Is a global portfolio riskier?
- Why economic growth and market growth are not the same
- Does a strong dollar impact a global portfolio?
If you are interested in retirement investing, read Vanguard’s CEO’s thoughts on this subject.