From the course: Understanding Capital Markets
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International markets
From the course: Understanding Capital Markets
International markets
- [Instructor] One important investment phenomenon is often referred to as the home bias effect. This means that investors tend to favor investing in their home country, but that's not an optimal investment approach. In fact, it fails to capitalize on some of the benefits of diversification by investing internationally. Let's take a look at some examples of how you can invest internationally, regardless of where you live. So what a lot of people don't realize is that there are investment products that you can use to invest around the world, even if you live somewhere else. For example, I've Googled EWJ stock, and this is the iShares MSCI Japan ETF. Now I went ahead and I opened this up. This is an investment product that is operated by iShares and BlackRock. And essentially, this is a fund which holds a series of Japanese stocks. In particular, we can come down to the bottom and we can see they've got roughly 198 Japanese stocks in the portfolio ranging from Toyota and Mitsubishi…
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