International ETFs Can Give A Much Better Return!

Do you know this fact that there are many stock markets in the world that can give you a much better return as compared to investing in your home stock market.

A few years back, it was hard for American investors to invest in international stocks. Many brokers couldn't process foreign trades. Tax paperwork for investing in international stocks was lengthy and complicated. Stock markets around the world were not that much integrated as they are today making it difficult to get the news about international stocks.

But today, things have changed. You can safely invest in international stocks. You must have heard about the Exchange Traded Funds or ETFs. ETFs have been the most revolutionary innovation of the past two decades.

ETFs give you the benefits of both mutual funds as well as stocks. There are many ETFs now that you can invest in including International ETFs. These International ETFs can give you the opportunity to invest in emerging economies like Brazil, China and India that are showing high growth rates for the last few decades.

You can buy and sell ETF shares just like the shares of any ordinary stock. You can go long, you can go short at your convenience unlike mutual funds that only allow selling or buying or mutual fund shares at the end of the day after the close of the trading hours. You also pay a much lower fee when you invest in ETFs as compared to Mutual Funds. This fee can be as low as 0.7% as compared to the usual 5-10% fee that you pay for investing in a mutual fund.

Let's make a quick comparison that shows how International ETFs are outperforming US Stocks. Take the example of Indonesia ETF (IDX). It has been giving return of 263.9% since the beginning of 2009. This return is ten times better as compared to investing in DOW stocks. Similarly, Chile ETF (ECH) has risen to 157.8% since the start of 2009 making it's performance six times better than DOW!

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