If you want to invest in a stock fund that goes beyond the borders of the United States, keep some definitions in mind.
Global or world funds can invest anywhere, including the United States.
International or foreign funds invest only outside the United States.
Thus, foreign stock funds provide a pure play on non-U.S. companies while world stock funds give the manager the flexibility to invest in promising U.S. companies as well. You also can find funds that invest in one continent (Asia, Europe, Latin America) or in single countries such as Japan. However, it’s very difficult for individual investors to come up with the right mix of regional funds. You’re probably better off with one international fund that gives the manager an opportunity to look anywhere for the best investments.
