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 can reduce investment volatility
- Different ebbs and flows of investment returns in different countries can reduce overall portfolio volatility
- This philosophy applies to both equity and stock markets
- Investing internationally is more expensive than investing domestically
- These portfolio managers suggest that at least 40% of equities and 30% fixed income should 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:
If you are interested in
retirement investing, read Vanguard’s CEO’s thoughts on this subject.
