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Investing in international stocks can provide growth opportunities and potentially higher returns. The global stock market offers a wide range of investment opportunities, from established companies in developed countries to emerging markets with promising growth potential. But investing in international stocks also comes with its own set of risks and challenges.
If you’re considering investing in international stocks, it’s crucial to identify the ones that have the potential to outperform and generate significant returns. By focusing on key factors such as financial stability, growth prospects and industry trends, you can make informed investment choices that align with your goals. In this article, Benzinga explores some of the best international stocks to invest in, providing you with valuable insights to help you make informed investment decisions.
Quick Look at the Top International Stocks:
Stock Movers
Gainers
| Ticker | Company | ±% | Buy Stock | |||
|---|---|---|---|---|---|---|
| MELI | MercadoLibre | $1979.20 | 0.91% | 347.7K | Buy/Sell | |
Loser
| Ticker | Company | ±% | Buy Stock | |||
|---|---|---|---|---|---|---|
| HDB | HDFC Bank | $62.21 | -3.59% | 2.5M | Buy/Sell | |
| BKF | iShares MSCI BIC ETF | $37.88 | -2.33% | 3.9K | Buy/Sell | |
| VXUS | Vanguard Total International Stock ETF | $60.94 | -1.67% | 2.9M | Buy/Sell | |
| EZA | iShares MSCI South Africa Index Fund | $47.04 | -1.35% | 158.8K | Buy/Sell | |
| ASML | ASML Holding | $668.02 | -0.5% | 1.8M | Buy/Sell | |
Pros and Cons
Before investing in the stock market, it’s important to weigh the pros and cons against your investing goals. Here are the main benefits and potential risks of international stocks.
Pros
- Diversification: Allows for diversification in terms of geography and sectors, reducing the risk of having all investments concentrated in a single country or industry.
- Potential for higher returns: International stocks may offer higher growth potential compared to domestic stocks, especially in emerging markets where there is rapid economic development.
- Access to new opportunities: Provides access to industries and companies that may not be available in the domestic market, presenting opportunities for investors to capitalize on emerging trends and technologies.
Cons
- Currency risk: Investing in international stocks exposes investors to currency fluctuations, which can impact the value of their investments. Exchange rate movements can either amplify or reduce returns.
- Political and economic instability: Carries the risk of political and economic instability in foreign countries. This can lead to sudden changes in market conditions, regulations or policies that can negatively impact investments.
- Lack of familiarity and information: Investing in international stocks requires a deep understanding of foreign markets, economies, regulations and cultural differences. It can be challenging to gather accurate and timely information about international companies, making it harder to make informed investment decisions.
Where to Buy
- Best For:Active and Global TradersVIEW PROS & CONS:Securely through Interactive Brokers’ website
- Best For:Global Broker for Short SellingVIEW PROS & CONS:securely through TradeZero's website
Frequently Asked Questions
Do you need international stocks in your portfolio?
Whether you need international stocks in your portfolio depends on your investment goals and risk tolerance. Including international stocks can provide diversification benefits and exposure to different markets, industries and currencies. It can also offer potentially higher growth opportunities compared to domestic stocks.
Can anyone invest in international stocks?
Yes, anyone can invest in international stocks. However, there may be certain requirements or restrictions depending on the country and stock exchange regulations. Investing in international stocks may also involve currency exchange and geopolitical risks, which can add complexity to the investment process.
Does Charles Schwab allow international trading?
Yes, Charles Schwab allows international trading. It offers a wide range of investment options for international markets, allowing investors to trade stocks, bonds, mutual funds and other securities in countries around the world.