Let's Talk International and Emerging Market Funds

Today I wish to speak about International and Emerging Market Funds in your portfolio.  Most any financial advisor will tell you that you should have a portion on your portfolio invested in International Funds.  I tend to agree to some extent.  But be careful!!!  I feel International Funds carry the biggest risk but can have some of the largest rewards in your portfolio.  Also be careful of the International Funds you get into as far as the country or countries they represent and the Fund itself and it's past performance history.  Many of the International Funds have had poor performance records for the past several years or so.  But when they hit they can hit big.  When they fall, they can fall hard.  Again research and pick your fund wisely.

Some funds you may wish to take a look would be CIVIX.  This International fund incorporates many holdings from various different companies located throughout the world like China, England, Sweden, etc.  Thus making this fund a little more appealing to me than just having holds from one country like many International funds represent.  It also has posted some good numbers the past couple of years.  The next fund I would look at is DEMIX.  It has posted some decent numbers the past few year so I would give it a try.

Personally I tend to not invest in a single International or Emerging Market Fund.  I buy individual stocks that represent other countries in my portfolio.  Many of the stocks I own can be found as holdings in many International and Emerging Market funds.  By doing it this way, I have exposed my portfolio to International holdings around the world that I liked, picked and chose and do not have to take all the other junk often found in many Emerging Market Funds.  I get good quality International Stocks such as NVS, BABA, RDS-B, and others.  So I do have exposure to the international community, but I have picked the ones I want, not the ones I have to take when investing in a Fund.  From those three examples Sweden, China and the Netherlands are represented and again that is just a few stocks that give me the kind of international exposure I want for my portfolio.

Regardless of how you choose to do it, with a International or Emerging Market Mutual Fund or with the purchase of Individual Stocks you should have these types of holdings and exposure in your personal portfolio.

Gus S.


Disclaimer: Make sure to review any information found on this blog site with your personal financial advisor before making any decisions. I am providing general information and not financial advise. I am not a licensed stockbroker or financial advisor.