Internet2k4

Exposure to International Stocks: A Challenge for Investors

On the four preliminary points, 1) ETFs are making asset classes available that were not easily available before, and the effect of investors diversifying into those classes is to drive up prices - the question of diversifying/chasing may be moot, 2) and 3) the comments on transparency and investor knowledge apply in the same way to just about every other asset class that is traded in funds - with funds, investors are seeking to avoid the layer of management risk in individual stocks, limiting exposure to the larger market and sector risks, 4) a fair comment on accounting standards although there is a gradual convergence of US, Eurozone and Canadian standards underway - I wouldn't conflate "international" with "emerging" markets in this respect, I think there is much to be said for playing the BRICs by investing in more mature economies that supply them or mirror their products (why buy Brazil when you can buy Canada?) Finally, blessings on your strategy, but I don't think there are enough competent stock pickers in the world to advise or manage the capital available for investment globally - as we know, most active managers can't compete with the index.