Here’s How to Think Global but Invest Local
When it comes to diversifying your retirement portfolio and investing in as many companies and industries as possible, nothing beats an exchange-traded fund (ETF). Similar to a mutual fund, ETFs are investments that (attempt to) mirror the return of a particular index. Unlike mutual funds, investors can buy and sell ETFs on the open market like a regular stock.
Both retail and institutional investors like ETFs because they give them the chance to add a basket of equities to their retirement portfolio that they could not otherwise afford to purchase individually. And with more than 1,400 ETFs available, covering every corner of the market (currency, oil, gold, livestock, grain, precious metals, etc.), and more hitting the markets all the time, it can be tough for investors to know where to begin.