One way you can diversify your international holdings is by investing in
Mutual funds are either open- or closed-ended.
Mutual funds pay investors through income and
There are four types of mutual funds that invest abroad: international funds, global funds, regional funds, and country funds. International funds, which are also known as overseas funds, invest exclusively in stock or bond markets outside of the United States. Investments may be in both well-established and emerging economies or they may be concentrated in one or the other. Global funds, or world funds, invest both domestically and internationally. Despite what the name suggests, global funds typically hold 75% of their investments in the United States. Regional funds focus on a specific geographic area, like Europe or Latin America, and country funds concentrate investments in one overseas country. The majority of country funds are closed-end funds.
As with any investment, the costs and risks associated with mutual funds vary depending on the type of fund in which you're invested.
Investors should consider the investment objectives, risks, charges, and expenses of mutual fund carefully before investing. A prospectus contains this and other information about the fund and is available through www.scottrade.comor through a Scottrade branch office. The prospectus should be read carefully before investing.