Some foreign mutual funds emphasize certain regions of the world. You can bet on a surge in Latin American stocks, for example, or invest in a uniting Europe.
The catch? Regional funds are expensive. While domestic stock funds have average expense ratios around 1.5 percent ($150 per year for every $10,000 you invest), foreign funds average nearly 1.75 percent. However, Morningstar Inc., Chicago, puts the average expense ratio at 2 percent for Europe-only funds and about 2.5 percent for Latin American or Pacific/Asia funds.
Those are averages, though: you can find lower-cost funds with good management if you shop around. Low-cost leaders include ICAP Euro Select Equity Fund (with an 0.80 percent expense ratio), T. Rowe Price Latin America (1.53 percent), and Fidelity Pacific Basin (1.5 percent).