International Mutual Funds and ETFs – Wise Investments?

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

Watch the complete video.

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.