The Best ETFs global or international shares sector includes ETFs, managed funds and index funds that cover international equities/share markets. The most popular international shares markets for ETFs include:
With around 98% of shares listed on markets outside of Australia, we think it's vital for Australian investors to consider looking abroad for exposure to some of the world's best companies, including those from the technology, communications and health care sectors.
Over the ultra-long-term, international shares have proven to be among the best-performing asset classes. However, it is also one of the riskier investments you can make, as measured by standard deviation or volatility.
When you're investing in international ETFs, it's worth noting whether or not you're prepared to take on the risk that the currency moves in your favour or against you. Typically, you'll have two options:
Which one is better? That's up to you.
Just keep an eye on the costs of the hedged versus unhedged versions of the strategy/ETF and consider your own risk profile.
Note: you should always consult a licensed and trusted financial adviser before doing anything. This information is factual information and should not be considered financial advice.
Finally, take note of where your international ETF is 'domiciled' by reading its PDS or the ETF Issuer's website because this -- sometimes hidden -- feature could meaningfully affect your tax.
Consult with your tax and/or financial adviser before investing.
According to academic study, when you invest globally, you may be lowering some of your risks. For example, you won’t have all of your eggs in your ‘Australia basket’.
However, there are extra risks added when you invest overseas. Some of these risks include:
You should always consult a licensed and trusted financial adviser before doing anything. This information is general information and should not be considered personal financial advice.
This brilliant (and free!) report is issued by Best ETFs Australia, a division of The Rask Group Pty Ltd. It is not a recommendation.
Speak to a financial professional before relying on this information and please read our Financial Services Guide (FSG).
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