International Investing
Many international companies are listed as American Depositary Receipts (ADRs) on U.S. exchanges and trade in U.S. dollars. ADRs, which are issued by U.S. depositary banks, represent shares of companies' stock that the bank holds.
One way you can diversify your international holdings is by investing in mutual funds. Mutual funds are investment products that pool capital from a number of investors and invest in a diversified portfolio of investments.
An investment company whose objective is to match the performance of a particular index - in this case, an international one - is called an exchange-traded fund (ETF).
Investing in internationally based companies that are traded in U.S. markets is another way to get international exposure in your portfolio. While most companies trade as ADRs, some are listed directly as they are in their own local markets.
Some investors choose to invest directly in international markets. Because overseas companies do not have to register or file reports with the SEC, it is important to do enough due diligence so that you feel comfortable with your investment decision.
A few unique risks that accompany international investing tend to make investing overseas inherently more risky than investing domestically.
Globalization makes it difficult not to feel the effects of the international markets regardless of whether you invest internationally. Economies interact every day and rely on each other for goods and services through trade.| Relative Strength Index (RSI) |
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Any specific securities, or types of securities, used as examples are for demonstration purposes only. No information on this Web site should be considered a recommendation or None of the information provided should be considered a recommendation or solicitation to invest in, or liquidate, a particular security or type of security.
Investors should consider the investment objectives, risks, and charges and expenses of a mutual fund carefully before investing. A mutual fund's prospectus contains this and other information about the mutual fund. Prospectuses are available through our trading site or through a Scottrade branch office. The prospectus should be read carefully before investing. No transaction fee (NTF) funds are subject to the terms and conditions of the NTF funds program. Scottrade is compensated by the funds participating in the NTF program through recordkeeping, shareholder, or SEC 12b-1 fees.
Investors should consider the investment objectives, charges, expense, and unique risk profile of an Exchange Traded Fund (ETF) carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies. A prospectus contains this and other information about the ETF and should be obtained from the issuer. The prospectus should be read carefully before investing.
Margin trading involves interest charges and risks, including the potential to lose more than deposited, or the need to deposit additional collateral in a falling market. Margin Disclosure Statement (PDF) is available for download, or it is available at one of our branch offices. It contains information on our lending policies, interest charges, and the risks associated with margin accounts.
Options involve risk and are not suitable for all investors. Detailed information on our policies and the risks associated with options can be found in the Scottrade Options Application and Agreement, Brokerage Account Agreement, and by downloading the Characteristics and Risks of Standardized Options and Supplements (PDF) from The Options Clearing Corporation, or by requesting a copy from your local branch office. Supporting documentation for any claims will be supplied upon request.
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