Transcript

Does investing in the US markets give you exposure only to the US economy? Many people believe so, but that’s not exactly true.

Hi, I’m Viram from Vested and today we’re busting a surprisingly common myth about the US investing.

The myth is that by investing via the US stock exchanges you only get exposure to the American economy. That is false. The US stock exchanges are actually a very good gateway to investing across the world.

First and foremost, the US exchanges list leading global companies from the European as well as Asian markets. They do this via a concept called American Depository Receipts. These Depository Receipts are issued in the US and allow you to buy the underlying companies listed outside of the US across multiple exchanges globally all of it in $$.

Secondly, ETFs are also an amazing way to invest globally through the US markets. In ETFs we particularly are excited about two types of ETFs: First are global equity or bond ETFs and Second are global industry ETFs.

Now, let’s take the Vanguard Total World Stock ETF for example. This ETF invests in stocks across the world which means that the ETF gives you access to leading global companies while mitigating any single-country risks.

It tracks the performance of the FTSE Global All Cap Index, which covers both well-established as well as still-developing markets. Similarly, Vanguard’s Total World Bond ETF gives you access to global bonds while the iShares Global 100 ETF tracks the top 100 countries in the world!

On the other hand, via the US markets you can also bet on upcoming sectors globally! If you think, for example, that Clean Energy or Metals as an industry are going to grow over the next few years. You can make your investment in global companies within that sector. A couple of such global sector ETFs that you can look at are Global Clean Energy iShares (ICLN) or the iShares MSCI Global Silver and Metals Miners ETF (SLVP) which invests in mining companies across the world.

So, to summarise, the US stock market is actually a great gateway to global investment opportunities. You can invest in global stock ETFs and bond ETFs or in ETFs with leading global companies or the companies directly themselves via ADRs and also make sector-wise bets.

Stay tuned for more!

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Our team members at Vested may own investments in some of the aforementioned companies/assets. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment or strategy will be suitable or profitable for an investor’s portfolio. Note that past performance is not indicative of future returns. Investing in the stock market carries risk; the value of your investment can go up, or down, returning less than your original investment. Tax laws are subject to change and may vary depending on your circumstances.

This article is meant to be informative and not to be taken as an investment advice, and may contain certain “forward-looking statements,” which may be identified by the use of such words as “believe,” “expect,” “anticipate,” “should,” “planned,” “estimated,” “potential” and other similar terms. Examples of forward-looking statements include, without limitation, estimates with respect to financial condition, market developments, and the success or lack of success of particular investments (and may include such words as “crash” or “collapse”). All are subject to various factors, including, without limitation, general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors that could cause actual results to differ materially from projected results.

This video is meant to be informative and not to be taken as an investment advice and may contain certain “forward-looking statements” which may be identified by the use of such words as “believe”, “expect”, “anticipate”, “should”, “planned”, “estimated”, “potential” and other similar terms. Examples of forward-looking statements include, without limitation, estimates with respect to financial condition, market developments, and the success of or lack of success of particular investments (and may include such words as “crash” or “collapse”.) All are subject to various factors, including, without limitation, general and local economic conditions, changing levels of competition within certain industries and markets, changes in interest rates, changes in legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors that could cause actual results to differ materially from projected results.