International Equity

International equity mutual funds and ETFs own equity securities listed on non-U.S.... International equity mutual funds and ETFs own equity securities listed on non-U.S. exchanges. These funds, which can be actively or passively managed, may, depending on their mandate, own stocks in developed or developing market economies. Developed market economies are highly advanced, and include countries such as Canada, Japan, Australia, the United Kingdom, Italy, Germany, and France. Developing market economies typically have higher growth rates compared to their developed market counterparts and include countries such as India, China and Mexico. Investors buy these funds to gain broad exposure to global growth. In recent years, the global economy has expanded strongly. China, for example, has seen per capita GDP expand from around US$7,000 in 2013 to nearly $13,000 in 2022. Germany, another large economy, has grown, albeit more slowly: per capita GDP in that country has increased from around US$44,000 to over $48,000 in this same timeframe. Meanwhile, technology stocks have become an increasing share of many international stock indexes. In Germany, for example, the tecDAX index, which included the largest 30 tech stocks in the country, has soared almost four-fold over the last decade. These funds may be appropriate for investors willing to take on some risk in search of higher returns. Note that funds with more developing market exposure tend to be riskier, while funds that don’t hedge currency risk expose investors to another layer of volatility. Last Updated: 12/27/2024 View more View less

International equity mutual funds and ETFs own equity securities listed on non-U.S. exchanges. These funds, which can be actively or passively managed, may, depending on their mandate, own stocks in developed or developing... International equity mutual funds and ETFs own equity securities listed on non-U.S. exchanges. These funds, which can be actively or passively managed, may, depending on their mandate, own stocks in developed or developing market economies. Developed market economies are highly advanced, and include countries such as Canada, Japan, Australia, the United Kingdom, Italy, Germany, and France. Developing market economies typically have higher growth rates compared to their developed market counterparts and include countries such as India, China and Mexico. Investors buy these funds to gain broad exposure to global growth. In recent years, the global economy has expanded strongly. China, for example, has seen per capita GDP expand from around US$7,000 in 2013 to nearly $13,000 in 2022. Germany, another large economy, has grown, albeit more slowly: per capita GDP in that country has increased from around US$44,000 to over $48,000 in this same timeframe. Meanwhile, technology stocks have become an increasing share of many international stock indexes. In Germany, for example, the tecDAX index, which included the largest 30 tech stocks in the country, has soared almost four-fold over the last decade. These funds may be appropriate for investors willing to take on some risk in search of higher returns. Note that funds with more developing market exposure tend to be riskier, while funds that don’t hedge currency risk expose investors to another layer of volatility. Last Updated: 12/27/2024 View more View less