Mutual Funds: International Funds
International funds -- funds that focus their investments on overseas markets -- are a great way for investors to tap into global economic growth as well as diversify their holdings beyond just homegrown U.S. stocks.
Within the large umbrella of international mutual funds there exists just about every type of mutual fund offered: bond funds, index funds, sector funds, small-cap funds, and so on. Also, investors can choose an international fund that focuses on a single country, a region, or one that includes every foreign country under the sun. (That last category raises a distinction to keep in mind: Offerings known as global funds or worldwide funds typically include U.S. stocks or bonds in their portfolio.)
One of the great things about international funds is that they give small investors access to regional stocks that would be difficult or at least very expensive to buy on their own. Another sound reason to invest in international funds is diversification.
However, plunking down some money for an overseas fund doesn't ensure diversity. Investors need to examine what kind of investment aims a fund has: Does it favor high-octane, high-risk technology stocks? Is it focused on small-cap stocks, or familiar blue-chip multinational stocks? To illustrate the point, the spring 2000 swoon in technology stocks hammered U.S. shares, but it also reverberated among tech stocks around the globe. Having a U.S. fund that invested heavily in tech stocks and an international fund that had a similar sector weighting wouldn't have given an investor a diversified portfolio.
Baby, Baby, It's a Wild World
Thanks to international funds, the world can be your oyster, but if you're not careful you can get shelled. It's best to keep yourself abreast of the world of international funds, which TheStreet.com does for you in its Personal Finance section (and the International section covers global trends that may affect your holdings). For more on international investing, here's a sampling of stories on international funds to help ensure safe journey as a globetrotting investor. Get Familiar With Foreign Stocks Go Global With Funds Over There: European Funds Shine Latin American Funds: Getting Hot Down ThereSelect the service that is right for you!
COMPARE ALL SERVICESAction Alerts PLUS
TRY IT FREEJim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
Product Features:
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
TheStreet Quant Ratings
TRY IT FREENew! $49.95/yr
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
Product Features:
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Stocks Under $10
TRY IT FREEDavid Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
Product Features:
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
- Weekly roundups
Dividend Stock Advisor
TRY IT FREEJim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
Product Features:
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
TRY IT FREEAll of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
Product Features:
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Options Profits
TRY IT FREEOur options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
Product Features:
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV