Five Ways to Invest in Emerging Markets (In Addition to Stocks)
Exchange-traded funds (ETFs): ETFs are designed to perform the same as a market index: They should go up when the index goes up and down when the index goes down. The key advantage is that you can buy or sell ETFs at any point in the trading day, long or short, with cash or on margin, through a regular brokerage account. Many of the ETF sponsors have funds that invest in different emerging market indexes, some diversified and some specific to one country.
Banks: Because banks are major beneficiaries of a country's economic growth, buying shares of stock in them can be a great way to invest in emerging markets. In addition, banks offer certificates of deposit (CDs) and other types of accounts that you may be able to use to invest in an emerging market's currency, possibly at higher interest rates than you can earn at home.
Currency mutual funds: One way to invest in emerging market bank accounts and in currency is through a currency mutual fund, which is a pool of money collected from thousands of investors that allows investors to build a more diversified portfolio than they may otherwise be able to build.
Real estate: Land is the one thing they aren't making any more of, as the joke goes, which makes it an appealing investment overseas. Among your investment alternatives are owning the land outright, investing in real estate investment trusts (REITs), and buying shares in construction ...
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