International Large-Cap Equity

International large-cap equity funds and ETFs are funds that own the largest... International large-cap equity funds and ETFs are funds that own the largest stocks outside of the U.S. in terms of market capitalization. They usually invest most of their assets in companies with market caps in excess of US$10 billion. These funds may be geographically diversified, owning stocks in North America, Asia, Europe, Latin America, and Australasia. Portfolios may own stocks in both developed and developing markets. They also can be actively managed or indexed and may pursue various strategies to achieve returns. For example, a large-cap manager may prioritize dividends when choosing stocks. These funds can invest in a wide range of sectors. However, the most popular sectors are healthcare, financial services, consumer discretionary, energy, and consumer durables. Most so-called blue-chip companies outside of the U.S. are large-caps (although not all large-caps are blue-chips). International large-caps are typically profitable, and many pay regular dividends to investors. These stocks often have a history of reasonably steady revenue and profit growth, as well as solid balance sheets with low levels of leverage. These qualities add to their perceived safety by investors. These funds may be appropriate for conservative investors, although those funds with more diversified portfolios are usually a safer bet than those with concentrated holdings in fewer stocks. It should be noted that there is still risk involved with these Funds. A significant concentration in one market or country can be a risk, as can currency depreciation if a fund is unhedged in this regard. Last Updated: 11/04/2024 View more View less

International large-cap equity funds and ETFs are funds that own the largest stocks outside of the U.S. in terms of market capitalization. They usually invest most of their assets in companies with market... International large-cap equity funds and ETFs are funds that own the largest stocks outside of the U.S. in terms of market capitalization. They usually invest most of their assets in companies with market caps in excess of US$10 billion. These funds may be geographically diversified, owning stocks in North America, Asia, Europe, Latin America, and Australasia. Portfolios may own stocks in both developed and developing markets. They also can be actively managed or indexed and may pursue various strategies to achieve returns. For example, a large-cap manager may prioritize dividends when choosing stocks. These funds can invest in a wide range of sectors. However, the most popular sectors are healthcare, financial services, consumer discretionary, energy, and consumer durables. Most so-called blue-chip companies outside of the U.S. are large-caps (although not all large-caps are blue-chips). International large-caps are typically profitable, and many pay regular dividends to investors. These stocks often have a history of reasonably steady revenue and profit growth, as well as solid balance sheets with low levels of leverage. These qualities add to their perceived safety by investors. These funds may be appropriate for conservative investors, although those funds with more diversified portfolios are usually a safer bet than those with concentrated holdings in fewer stocks. It should be noted that there is still risk involved with these Funds. A significant concentration in one market or country can be a risk, as can currency depreciation if a fund is unhedged in this regard. Last Updated: 11/04/2024 View more View less