Suppose, you get the opportunity to invest in the stock markets around the world, would you take it if you know that the return you would be making by investing in foreign stocks would be much higher than investing in the US stock market.
A few years back, it was hard for American investors to invest in international stocks. Many brokers couldn’t process foreign trades. Tax paperwork for investing in international stocks was lengthy and complicated. Stock markets around the world were not that much integrated as they are today making it difficult to get the news about international stocks.
But things have changed now. With the click of a mouse you can invest in the International ETFs ( Exchange Traded Funds). International news travels much faster today. Just think about Twitter and Facebook how they are integrating the world. Financial news travels very fast on Twitter. Tax paperwork is now easy.
For the past many years, emerging economies like Brazil and India have performed well. You can invest in International ETFs now just like you do in the NYSE. ETFs give you the advantages of both the stocks as well as the mutual funds with none of their disadvantages.
When you invest in ETFs, you can buy and sell the shares just like you do for an ordinary stocks anytime you want during the market open time. Each ETF is designed to follow some market index instead of following a single stock. So, you get the benefits of diversification just like you do when you invest in a mutual funds. However, unlike the mutual fund, you pay a very little fee something like 0.7% when you invest in an ETF as compared to a mutual fund where you have to pay a fee that might be as high as 4-6% or even more.
Think about the DOW Index as the barometer of the NYSE. Let’s compare the return when you invest in the DOW as compared to an International ETF. Let’s take a few examples. The Chile ETF (ECH) has risen 157.8% since the beginning of 2009 while the Indonesia ETF (IDX) has risen more than 263.9% since the start of 2009. The performance of Chile ETF has been 6 times better than the DOW while the performance of Indonesia ETF (IDX) has been 10 times better than the DOW. Make your own judgment! Get this 52 page ETF Trading Guide FREE! Learn How To Hack The Stock Market with John Bell and discover a stock market loophole that can make you $10K each and every month!