With the emergence of ETF or Exchanged-Transfer Fund, more investors are seeking a way to diversify their investment portfolio. You may have heard from stock experts that aside from US ETF, you must consider putting your money on the international route. In short, you invest in foreign ETF.

How safe is it? You may ask. You may also wonder if there are benefits that will come with putting money in a company situated in an emerging country. We understand that you might be critical by now. After we state the advantages of investing in a foreign market, you may consider this business strategy.

If you invest in a foreign ETF, you are getting these benefits:

• Investment in diverse markets gives you a fail-safe blanket. If one local market fails, you can at least rely on another surging stock market. In a diversified portfolio, foreign investments are still important. In order to get the best out of your money, invest in companies with international clout and renowned name.

• This kind of investment adds value to your revenue. For example, when international oil prices surge up again, foreign oil companies are the sure winner since they are just following the international price. Since these foreign companies have lots of reserves, the high price is an advantage.

• Foreign companies that give high dividends are the favorite of investors. When you do the calculations, almost all foreign companies have higher yields than US-based ones.

• Consider Japan in your investment. It is one of the largest foreign markets in the world. Perform a check on the accounting sheets of Japan-based companies and you will see that despite strong export reliance, they are still fast-growing investment markets. Aside from Japan, other Asian countries have potential high rewards albeit they have high risk percentage.

• Emerging markets like that in Asia provide the best investment revenue in terms of bonds and convertibles. Yields are calculated to rich as high as two digit numbers.

MSCI Emerging Market ETF index holds a balanced weight of 17 % in S. Korea, 11 % in Taiwan, 10 % in China, 10 % in Russia, 9 % in South Africa, 7 % in Mexico, and 5 % in India. This option requires low fees to maintain.

Another ETF option is global sector investment which has clout in Japan and UK. Their holdings include Citigroup, Bank of America, HSBC. AIG, and JP Morgan Chase.

Country-specific ETF via iShare has a good participation in the foreign market. They are cap weighted and it is easy to pinpoint which companies under this clout are first-rate service providers.

Another ETF option to consider is Country ETF. This ETF type has 32 % balanced weight in Canada, 24 % in Brazil, 61 % in Belgium, 52 % in Hong Kong, 57 % in Switzerland.

A wise investor does not rely on the local market alone. No matter how stable your investment in a local market maybe or no matter how comfortable you are in your current ETF options, putting your money in a foreign ETF is a wise choice to have a diversified investment portfolio.