International Index Funds

Why investors hold stocks from outside the US, the difference between developed and emerging markets, currency risk, and what the real record of international funds teaches.

The rest of the world

US companies make up a large share of the world’s stock market value, but far from all of it. International index funds let you own companies based in Europe, Japan, the UK, Canada, Australia and fast-growing economies such as India, Taiwan and Brazil with a single ticker.

Holding international stocks spreads your bets across different economies, currencies and business cycles. When one region struggles, another may do well.

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