Chapter 9
Going Global: ETFs without Borders
IN THIS CHAPTER
Understanding how global diversification lowers risk
Calculating how much of your ETF portfolio to allocate overseas
Deciding upon your investment destinations
Choosing your best ETF options
Knowing what to avoid and when to stay home
If you were standing on a ship in the middle of the ocean (doesn’t matter whether it’s the Atlantic or Pacific), and you looked up and squinted real hard, you might see investment dollars sailing overhead. In the past 20 years, Americans have invested many billions overseas, and many ‘oversea-ers’ (the best part of being an author is getting to make up words) have invested in the United States. According to figures from the Investment Company Institute, the average U.S. investor in 2001 had but 13 percent of their equity portfolio allocated to non-U.S. stocks; today, that figure is 24 percent.
Many investors, alas, began to up their exposure to foreign stocks for the same reason that they ...
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