International Investing


DEFINITION of 'International Investing'

The strategy of selecting globally-based investment instruments as part of an investment portfolio. International investing includes such investment vehicles as mutual funds, American Depository Receipts, exchange-traded funds (ETFs) or direct investments in foreign markets. People often invest internationally for diversification, to spread the investment risk among foreign companies and markets; and for growth, to take advantage of emerging markets.

BREAKING DOWN 'International Investing'

International investments can be included in an investment portfolio to provide diversification and growth opportunities. All types of investments involve risk, and international investing may present special risks, including:
-Fluctuations in currency exchange rates
-Changes in market value
-Significant political, economic and social events
-Low liquidity
-Less access to important information
-Foreign legal remedies
-Varying market operations and procedures

  1. Investing

    The act of committing money or capital to an endeavor with the ...
  2. Exchange-Traded Fund (ETF)

    A security that tracks an index, a commodity or a basket of assets ...
  3. International Organization Of Securities ...

    A global cooperative of securities regulatory agencies that aims ...
  4. Investment

    An asset or item that is purchased with the hope that it will ...
  5. Mutual Fund

    An investment vehicle that is made up of a pool of funds collected ...
  6. Benchmark

    A standard against which the performance of a security, mutual ...
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