Total International Equity Indexing— The way to a diversified portfolio and better asset potential

With total international equity indexing you gain access to non-U.S. companies whose brand names you already know and trust—Tide, Life Savers, and 7-UP are just a few. In all likelihood there are many others you’ll immediately recognize, several probably within your own household.

Here’s a quick overview of how total international equity indexing can help you expand your portfolio and increase your asset potential. I believe you’ll be happy with your ability to achieve dramatic results.

An uncomplicated strategy just right for your pace

By investing in a total international index portfolio you increase your portfolio’s diversification because the wide-spread exposure you gain covers both developed (U.S. and major European companies, plus Canada, Japan, Australia and New Zealand) and emerging markets (all other countries who have started to grow but have yet to reach full political or economic stability). This single-product investing approach with its simplistic structure helps you create positive returns by building equity in some of the highest performing regions and countries world-wide.

Diversification to help reduce risks and increase your earning potential

The concept of diversification is rather simple: don’t put all your money in one place—including the same sector. This way if a market you invest in goes under, all your capital doesn’t sink with it because you have investments in other areas. By investing in a total international equity index portfolio you get an all-inclusive method that helps lower portfolio volatility while at the same time potentially increasing your opportunity for attractive financial gains.

More reasons to consider total international indexing

  • The easy, single-product approach helps you maintain your investing momentum in both U.S. and non-U.S. markets.
  • Changing values of each stock affect their percentages of your total portfolio. Automatic rebalancing facilitates the appropriate transactions necessary to realign your portfolio so your intended allocations stay put.
  • You save money due to minimized transactions which are inherent with frequent manual balancing. Lower costs are passed on to you in the form of higher returns.
  • Eliminate troublesome decision making about how you’re going to allocate assets among developed and emerging markets.
  • Flexible. Convenient. Smart. If you’re looking for an exciting opportunity that keeps step with your stride, this simplified investment strategy could be the perfect fit for you.

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This entry was posted on Wednesday, October 15, 2008 at 9:39 am and is filed under Financial Goals. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Total International Equity Indexing— The way to a diversified portfolio and better asset potential”

  1. David Raddie Says:

    October 24th, 2008 at 3:34 pm

    I agree.

    Diversification among the stocks of many companies reduces unsystematic risk because, of course, it’s highly unlikely that every one of the unhappy events listed above will occur in all companies.

    Diversification is an important and useful principle of investing. To diversify your investments, you simply vary where you put your money. Diversification is a fundamental investment concept that most investors have no trouble understanding. If, for example, an investor owns equal dollar amounts of only two stocks, and one suffers a 50% loss, his or her portfolio has gone down in value by 25%.

    Diversification can’t guarantee a profit or protect against a loss, but it can help you balance risks. Diversification (holding many securities) may eliminate the unsystematic risk from a portfolio.

  2. Jane Says:

    November 4th, 2008 at 12:43 pm

    Thanks for the info.

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