Are international mutual funds and ETFs a good idea? This video highlight summarizes the thoughts of two Vanguard professional fund managers
International Mutual Funds and ETFs – Video Highlights of Interview with Andrew Patterson and Scott Donaldson
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- Diversifying investments across different countries and regions can reduce investment volatility
- Different ebbs and flows of investment returns in different countries can reduce overall portfolio volatility
- This philosophy applies to both equity and stock markets
- Investing internationally is more expensive than investing domestically
- These portfolio managers suggest that at least 40% of equities and 30% fixed income should be invested outside the U.S.
- This can be accomplished by investing in international mutual funds or international ETFs
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