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International ETF's have gained popularity in recent years as investors have clamored to gain exposure to the growth in emerging markets. As an investment vehicle, international exchange traded funds comprise a basket of stocks representing an asset class, region or sector. Some ETF's are structured for high yield whilst others are structured for growth. Other funds replicate the index of a foreign market. There are many advantages to using international ETF's. ETF's trade
on the exchange of foreign countries and domestic investors can
gain exposure to a foreign region without the need to open an account
in the native country, hold currency reserves or purchase the stock.
Because international stock ETF's replicate a basket of securities,
international investing in countries such as Brazil, China or India
has become easier for investors who would otherwise be subject to
legislative constraints or barriers to entry. The stock can be bought
and sold in the same way that a conventional stock transaction takes
place. Some international ETF's and their constituents are examined below: iShares:MSCI Hong Kong (EWH) Investors can gain exposure to the Hong Kong market. This international
ETF aims to replicate the Hong Kong Index and the top underlying
shares. The top 10 holdings are as follows: iShares:MSCI S Korea (EWY) Samsung Electronics Co Ltd: 14.23% iShares:MSCI Belgium Fortis NV: 24.29% Investors and traders who want to gain exposure to international
stock market growth regions and take advantage of currency differentials
can add international ETF's to their trading arsenal. There are
many ETF's traded on US markets. You can visit market portal sites
such as Marketwatch to examine the products on offer and to learn
more about international exchange traded funds and their constituents.
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