Another way to buy stocks is to purchase shares of foreign companies through American Depositary Receipts (ADRs) - traded on the New York Stock Exchange and/or through mutual funds hold foreign equities in their portfolio. ADRs are special certificates that represent shares of a foreign company. ADRs are issued in the U.S. and their underlying shares are held in U.S. banks.
Getting into the international markets space can be daunting for investors especially since they need to consider many factors that don't affect them such as the regulatory, political, and economic environments of those markets. Another way to invest internationally is to buy mutual funds or exchange-traded funds, which invest exclusively in foreign markets. Or consider a global fund which can have a mix of both foreign and U.S. stocks. These funds provide you with more diversification because they invest in an array of foreign equities. An Isakov Planning Group Financial Advisor can position your portfolio in such a way that you can take advantage of added international exposure.
For more sophisticated investors who are looking to uncover specific opportunities in particular regions or sectors, various types of funds such as regional funds are available. These types of funds are designed to bring investors specific opportunities in foreign markets, but they do carry a higher degree of volatility.
