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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.
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. Next Article: Oil ETF |
